A.G. Kalman wrote:
- quote -

That should have said: "Unlike 2003, the IRS.......

--
Alan
http://taxtopics.net

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Susan Sifton wrote:

- quote -

Unlike 2004, the IRS has not issued a Quick Alert that the
same problem has popped up for tax year 2004. You also say
that the IRS notice stated that they calculated a non-zero
amount for AMT. Therefore, you should file the 6251 that
reflects a zero amount.

--
Alan
http://taxtopics.net

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Susan: Instructions for form 6251 require its submission if
you are seeking the AMT credit on form 8801. How else can
they determine the difference between TMT and regular Tax,
which is the maximum amount of credit available on 8801?

Probably if you don't send it to them you won't get the AMT
credit. "Non-Zero" means positive or negative amount. I do
not think that ignoring an IRS request for missing pertinent
information is considered the "correct action" by a
preparer.

ed

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"Susan Sifton" <shiftonica[at]yahoo.com> wrote:

- quote -

I always say never ignore any letter from IRS. Respond to
it in some way.

Wayne Brasch

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Susan Sifton wrote:

(snipped)

- quote -

Well now, I have many clients who pay state income taxes,
and sure, my software always includes calculations for a
6251, and I file about 99.4% of clients' returns
electronicaly.

But none of them get any such letters. But, who knows? The
other shoe might drop next Monday morning.

ChEAr$,
Harlan Lunsford, EA n LA

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In the past, IRS computer glitches ushered false AMT demand
letters. Now, I've received one myself, for the December 31,
2004 tax year. Is this 2005 issue the same problem the IRS
had in past years? Is anyone else getting a false AMT demand
letter again?

Or, has the IRS improved their algorithm?

Note:
I have a very simple tax situation. Since I pay state taxes,
I must do the dreaded AMT worksheet. TurboTax calculated 0
dollars due in AMT so I did not submit form 6251. TaxCut did
submit form 8801 which gets its information from form 6251.
All this was sent electronically on April 1, 2005 to the
IRS.

Then I received a letter from the IRS on May 5, 2005. The
IRS sternly told me they calculated a non-zero AMT amount.
Therefore, they included a demand letter for form 6251.

Is this the same problem they had last year where I didn't
need to respond? If I remember correctly, ignoring the
demand letter in May of 2004 was considered the correct
action.

I need this advice as to whether or not to ignore this years
demand letter.

Thank you in advance,
Susan Shifton

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