No penalty, you just won't get your AMT credit if you don't
send them the 6251 that indicats how much spread you had
between TMT and regular tax. Note it is required in the
instructions. p.s. "Non-zero" amount means negative or
positive amount.

ed

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Ever since the bubble burst and I payed more than my income
in AMT, the treasury department has been sending a yearly
request for IRS form 6251 "Alternative Minimum Tax -
Individuals" even though my AMT tax was calculated as zero
by TaxCut and sent electronically to Holtsville, NY.

In the past, I simply replied to the IRS with form 6251, but
I'm kind of getting tired of this.

A friend said I did not have to submit IRS AMT form 6251 if
I didn't owe the AMT. He said he just ignores these letters
which he gets off and on over the years.

If TaxCut calculates 0 AMT owed, can I follow my friend's
advice and simply ignore the IRS request? They say they will
hold up my sizeable refund if I don't send in form 6251. Am
I liable for penalties if I don't send the form in (I know
my state has a provision if you don't answer their letters
they charge you 25% of your total tax EXTRA whether or not
you ever owned them a red cent!).

Does the federal government charge that 25% of your total
tax liability penalty if I don't answer their request for a
form which I already know won't change my tax situation?

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