Dear Acting Commissioner Stiff:
Under present law, more than 23 million taxpayers will be subject to higher taxes in 2007 unless legislation is enacted to limit the reach of the Alternative Minimum Tax (AMT). We realize that this fact is causing concern for many taxpayers and is creating administrative difficulties for the IRS as the agency prepares for the upcoming filing season.
As the leaders of the Congressional tax-writing committees, we want to assure you that legislative relief is forthcoming so that no new taxpayers will be subject to the AMT for taxable year 2007.
To accomplish this, we are committed to extending and indexing the 2006 AMT patch with the goal of ensuring that not one additional taxpayer faces higher taxes in 2007 due to the onerous AMT. In addition to allowing the personal credits against the AMT, the exemption amount for
2007 will be set at $44,350 for individuals and $66,250 for married taxpayers filing jointly.
We plan to do everything possible to enact AMT relief legislation in a form mutually agreeable to the Congress and the President before the end of the year. We urge the Internal Revenue Service to take all steps necessary to plan for changes that would be made by the legislation.
Thank you for your immediate attention to this matter.
Sincerely yours,
Max Baucus, Chairman - Committee on Finance Charles B. Rangel, Chairman - Committee on Ways and Means Charles E. Grassley, Ranking Member- Committee on Finance Jim McCrery, Ranking Member - Committee on Finance
cc: Treasury Secretary Hank Paulson
Source: Ranking Member’s News
