The Internal Revenue Service (IRS) has implemented new tax relief strategies for taxpayers with excessive tax debt, such as those with many business and personal tax debts. These strategies have been primarily designed to offer taxpayers greater tax relief through smarter tax planning and filing decisions. One of the most significant changes involves the lowering of the Alternative Minimum Tax (AMT) for high-income individuals and small businesses. Although the AMT is one of the most feared tax credits by tax advocates, recent changes to the tax code have lowered the tax burden for millions of dollars in taxpayer debt.
The IRS has issued Notice 2021-3, which lowers the AMT by two-percent, from its current rate of nine percent. In addition to this drastic change in the tax burden, this legislation has also reduced the threshold for tax relief to only $250,000. To the disappointment of many tax advocates, Florida taxpayer-rights advocates are disappointed by the decision not to extend the AMT in light of the thousands of other Florida taxpayers who are in the same situation as they are. In an attempt to remedy this issue, Florida`s General Lawmakers recently passed House Bill 712, which will reinstate the AMT and provides further tax relief to many other Florida tax payers.
Tax Relief Assistance in Tucson
The new legislation passed by the Florida House of Representatives includes several tax relief strategies, which include deductions for many home repairs, medical expenses, home equity loans, credit card interest, and losses, among others. Although some Florida tax-debt taxpayers have criticized the lack of home equity or medical deduction in the past, many argue that this provision actually encourages citizens to build, or repair their homes instead of merely storing them. The IRS has also recently signaled that it may adopt a similar strategy with the introduction of a new tax relief called the `Home Buyer Tax Credit`. Though many Florida tax-debt debt attorneys believe that this latest legislation provides sufficient tax relief to most homeowners in Florida, many remain skeptical about the impact of the Home Buyer Tax Credit on Florida`s home-buyer market and believe that the legislature may not be able to sustain such cuts. Florida`s current congressional leadership has also criticized the AMT and has threatened to introduce a constitutional amendment to reinstate the tax breaks.