Preparing Your Tax Return(s) and InformationReturns
What are Business Taxes
Alternative Minimum Tax

The tax laws give special treatment to some types of income and allow special deductionsand credits for some types of expenses. These laws enable some corporations withsubstantial economic income to significantly reduce their regular tax. The purpose of thecorporate alternative minimum tax (AMT) is to ensure that these corporations pay amini-mum amount of tax on their economic income. A corporation owes AMT if its tentativeminimum tax is more than its regular tax.

Tentative minimum tax of a small corporation. For tax yearsbeginning after 1997, the tentative minimum tax of a small corporation is zero. This meansthat a small cor-poration will not owe AMT.

Small corporation. For AMT purposes, a corporation isa small corporation if it meets any of the following tests.

1) This is its first tax year.
hoteles en Tartu 2) This is its second tax year and its annual gross receipts for its first tax year were not more than $5,000,000.
3) This is its third tax year and its average annual gross receipts for its first two tax years were not more than $5,000,000.
accommodation in Valkenburg 4) This is its fourth tax year and its average annual gross receipts for its first three tax years were not more than $5,000,000.
Oradea hotels review 5) This is its fifth or later tax year and it meets both of the following tests.

a) Its average annual gross receipts for its first 3-tax-year period beginning after 1993 were not more than $5,000,000.
b) Its average annual gross receipts for all later 3-tax-year periods beginning after 1993 and ending before the current tax year were not more than $7,500,000.

For these tests, gross receipts for a short tax year are annualized.

Form 4626. Use Form 4626 to figure the tentative minimum tax of a corporation that is not a smallcorporation for AMT purposes.

Important References

Publication 542Corporations
Form 4626          Alternative Minimum Tax -Corporations