Last-minute rush to prepay taxes gives rise to confusion, anger

New York

IN Hempstead, a Long Island town in New York where the typical property tax bill tops US$10,000, residents have lined up all week to prepay those taxes for next year.

They have been trying to save thousands of dollars before the new federal tax bill, which goes into effect on New Year's Day, sharply limits deductions for state and local taxes.

But late on Wednesday, the IRS issued new guidance that those people may not be able to save the money after all, because a loophole that they were hoping to exploit might be narrower than thought.

So when Donald Clavin, Hempstead…