Late today the Senate passed a one-year Alternative Minimum Tax (AMT) patch that did not have any corresponding tax increases. The measure will now go to the House where it faces an uncertain future.
The House had passed a two-year patch that contained corresponding tax increases. As I mentioned previously, there’s no chance that an AMT patch which contains tax increases can pass the Senate nor would it be signed by President Bush. However, that doesn’t mean that House Democrats have figured that out.
Other tax measures which are scheduled to expire were removed from the AMT legislation. A separate bill on those “extenders” will soon be introduced. However, because it will contain corresponding tax increases it, too, faces an uncertain future.
Meanwhile, tax forms (which will almost certainly be wrong) are being printed at the Government Printing Office, and I and other tax professionals will have to explain to clients why the forms are wrong. As I said before, I expect that by April 15, 2008 all of my hair will be gray.