Hell hath no fury like a person who just found out the
alternative minimum tax applies to them. The IRS has set up an
online tool to figure out if you do.
Alternative Minimum Tax
The alternative minimum tax is a procedure that was set up to
keep the richest of Americans from avoiding tax paying
responsibilities. As is typical of the federal government, the
failed to include any language adjusting for income growth and
so on. As a result, the alternative minimum tax creams many
taxpayers even though it was never intended to cover them.
So, why don't our beloved leaders just amend the relevant codes?
Politicians giving up money they can spend on wars and favorite,
but unnecessary, projects in their districts to keep voters
happy? Surely, you aren't that naïve anymore. Oh, they will talk
about repealing or modifying it, but it just never seems to
happen. Hmmmm...
To determine if the alternative minimum tax applied to your
situation, you have to take a very simple step. Fill out your
taxes using both the regular 1040 forms and the alternative
minimum tax forms. What a complete waste of time. Fortunately,
the IRS seems to agree.
Much like those handy online mortgage calculators, the IRS has
taken the alternative minimum tax into the digital world. It has
created a new online tool where you can enter the relevant
information and find out if you are subject to the alternative
minimum tax. One simply goes to the IRS web site, does a search
for "AMT Assistant" and starts entering information. The process
takes between five and 10 minutes if you have your financial
number handy. If you don't, add however much time it takes you
to get your records together.
Now, you might be a little nervous about entering financial
information on the IRS site. What if they are tracking you?
Don't worry. It is anonymous. The information can't be tracked
back to you unless the IRS wanted to hunt IP numbers through
hosting companies and computer systems. Given it takes 30
minutes just to get an IRS representative on the phone, it is
highly unlikely this will occur.
When you've got your courage up to full tilt, give it a try.
Maybe, just maybe, you'll find you aren't subject to the
alternative minimum tax.
About the author:
Richard A. Chapo is with
http://www.businesstaxrecovery.com -
recovery of business taxes through tax help and tax relief.
Visit
http://www.businesstaxrecovery.com/articles to read more
business tax articles.
