Tax Analysts provides news, analysis, and commentary on tax-related topics, including the latest developments affecting treatment of the alternative minimum tax, or AMT.
The alternative minimum tax (AMT) was first introduced in 1969 in response to highly-publicized instances in which individuals with high incomes paid no federal income taxes. At first the AMT was an additional tax, but it morphed into a parallel tax system.
The rules for the federal AMT are found in sections 55 – 59 of the Internal Revenue Code. In general, the AMT differs from the regular tax regime in that certain items of tax preference (including those in section 57) and certain losses (section 58) may not be taken into consideration when determining the AMT. The levels at which individuals, corporations, or trusts may be subject to the AMT were static, changed regularly by legislation, until 2012, when the text of the Code was amended to allow for automatic annual inflation adjustments. (For 2016, these amounts are found in Revenue Procedure 2015-53)
Whether from a policy perspective ("The Minimum Effective Rate Tax Plan"), or in court decisions (Vichich v. Commissioner, 146 T.C. No. 12), whether in a federal ("CRS Summarizes Individual AMT"), state ("Puerto Rico’s AMT Unconstitutional, U.S. Court Holds"), or international ("Transfer Pricing Adjustment Can’t Increase Book Profit, Mumbai Tribunal Rules") context, the AMT is a topic that reappears frequently.
Tax Analysts consistently and promptly publishes all relevant developments regarding alternative minimum tax (AMT) news.