Corporations Failing To Claim Amt Exemption Overpay Taxes By 11 000

Corporations Failing To Claim Amt Exemption Overpay Taxes By 11 000



Corporations Failing to​ Claim AMT Exemption Overpay Taxes By $11,​000
Does your incorporated business pay alternative minimum tax [AMT]? If so,​ there is​ a​ 93% chance you​ have been overpaying your taxes by an​ average of​ $11,​000 a​ year according to​ the​ Treasury Inspector General.
The Office of​ the​ Treasury Inspector General for Tax Administration was created in​ 1999 to​ oversee the​ IRS .​
One of​ the​ duties of​ the​ Treasury Inspector General is​ to​ study and report the​ efficiency of​ the​ tax payment system,​ particularly the​ accuracy of​ tax collection efforts .​
Many of​ the​ studies conducted by the​ office reveal starting results,​ particularly when it​ comes to​ businesses overpaying their taxes.
As part of​ this oversight,​ the​ Treasury Inspector General is​ reporting that many small business corporations are incorrectly paying AMT .​
The AMT was enacted in​ the​ late 1990s,​ but proved to​ be a​ huge burden on​ small businesses .​
The tax was confusing and the​ paperwork was incredibly complex .​
An amendment was subsequently added to​ give small business corporations relief from the​ AMT .​
Section 55(e) of​ the​ Internal Revenue Code now contains language exempting small business corporations from paying the​ AMT.
Small business corporations can claim an​ exemption from the​ AMT if​ gross revenues average $5 million or​ less for the​ initial three years of​ business .​
Thereafter,​ the​ business can continue to​ claim the​ exemption as​ long as​ revenues average $7.5 million or​ less of​ each subsequent three year period.
According to​ the​ Inspector General,​ companies that fail to​ claim an​ exemption to​ the​ AMT are overpaying taxes by an​ average of​ $11,​638 each year .​
93% of​ small business corporations qualify for the​ exemption .​
Since the​ IRS has no duty to​ notify taxpayers of​ overpayments,​ many small business corporations have no idea they are overpaying taxes and are due refunds.
All taxpayers have the​ right to​ file amended tax returns for the​ past three calendar years .​
Contact us now to​ find out if​ you​ failed to​ claim the​ exemption to​ the​ AMT and are due a​ refund for 2001,​ 2002 and 2003 .​
If you​ failed to​ claim the​ AMT exemption,​ you​ may be due a​ refund totaling over $33,​000.




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