The House passed H.R. 3996, the Temporary Tax Relief Act of 2007, on November 9, 2007,. The Act would shield about 21 million people from the alternative minimum tax next year, and pay for it in part by ending tax breaks for private equity funds, hedge funds and other partnerships.
But the bill, approved by 216 votes to 193, faces a highly uncertain future in the Senate, and President Bush has threatened to veto it.
If Congress fails to act, the alternative minimum tax will hit 23 million taxpayers (with Californians hit disproportionately hard), up from 4.2 million in 2006. If the bill is not passed in time for IRS forms to be updated, taxpayers could be faced with slow IRS processing, including refund processing.
