Delayed Refunds

Congress waited until Christmas, 2007, to pass legislation regarding the Alternatve Minimum Tax (AMT).  It took the  Internal Revenue Service (IRS) eleven weeks to reprogram their computers.  Until the reprogramming was completed. the IRS did not accept any returns (mailed or electronically filed) for processing.  An unknown amount of returns were held in the queue until the programming was completed and the program was accepted.  Refunds for e-filed returns were delayed 60-90 days, paper-filed returns several months.

Congress again waited until yearend to pass tax legislation.  However,  this time the list of tax changes is extensive and might require much more than eleven weeks for reprogramming, testing and acceptance.  The IRS has not announced when it will begin accepting e-filed returns, so all filed returns will be held in limbo until that time.  Refunds will consequently be delayed.