Companies subject to the alternative minimum tax
face additional limitations on foreign tax credits and losses that specifically are designed to ensure the payment of a minimum amount of U.
EGTRRA and JGTRRA tax cuts threatened to make many new taxpayers subject to the alternative minimum tax
The Act also extends marriage penalty relief and child tax credits through 2010, increases assistance to military families, extends alternative minimum tax
relief through 2005, and broadens and extends the disclosure authority relating to terrorist activities as well as provisions allowing the disclosure of tax return information for student loan repayment administration.
When the alternative minimum tax
was originally en acted in 1969, it was targeted at high-income individuals who paid no income taxes.
In no case can the credits be used to reduce liability below either the alternative minimum tax
-or 75% of the net liability if above $25,000.
The IRS, asserting that the deduction was not allowed for alternative minimum tax
(AMT) purposes, issued a deficiency notice.
Because of the interaction between regular tax and alternative minimum tax
rules, however, these taxpayers can owe significant amounts--sometimes exceeding their entire receipt.
Small businesses may have paid $37 million in taxes they never owed because of confusion over the alternative minimum tax
, according to a report by the Treasury Department's tax inspector general.
and that while the AICPA supports outright repeal of the alternative minimum tax
, the proposed changes in H.