IRS: Refund Will Be Delayed For 3 Million

WASHINGTON — More than 3 million people will have to wait until February to get their tax refunds because of Congress's late fix to the alternative minimum tax, the IRS said yesterday.

Congress put a one-year freeze on growth of the alternative minimum tax last week, shielding many middle- and upper-middle income taxpayers from first exposure to the tax. But Congress's late action means the Internal Revenue Service won't be able to start processing five AMT-related forms until February, delaying potential refunds for those people until that month. Between 3 million and 4 million people filed in January for their 2006 taxes using those forms, with many expecting a refund, the IRS said. The average refund was $2,324, the agency said.

"We regret the inconvenience the delay will mean for million of early tax filers, especially those expecting a refund," the acting IRS commissioner, Linda Stiff, said. As many as 13.5 million people will have to wait until February 11 to start filing with the five AMT-related forms, but only between 3 million and 4 million people file during the early tax season.