In a 10/31/07 letter to Senator Max Baucus, Chair of the Senate Finance Committee, Acting IRS Commissioner Linda Stiff discussed pending legislation addressing the alternative minimum tax (AMT) through an indexed exemption amount for 2007 and the allowance of personal credits against the AMT. She notes that until the legislation is passed and signed into law, the IRS's systems "cannot be fully programmed for the proposed AMT patch." Furthermore, she estimates a timeframe of approximately 10 weeks after enactment before the IRS can process affected tax returns. Accordingly, enactment of an AMT patch in December "could delay processing of returns for as many as 50 million taxpayers and could delay issuance of approximately $75 billion in refunds."
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