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.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/7-0fd=Rurl=http://economictimes.indiatimes.com/Personal_Finance/Tax_Savers/Tax_News/Growth_in_direct_taxes_falls_to_255_in_Sept/articleshow/3568052.cmscid=1254761692ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNHekr8X54VUVUXB4bdDxMeuI_INDQGrowth in direct btaxes/b falls to 25.5% in Sept/abrfont size=-1font color=#6f6f6fEconomic Times,nbsp;Indianbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1NEW DELHI: Direct btax/b collections, which had remained buoyant till now, appear to be showing some early signs of slowdown. Overall direct btax/b kitty grew b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-1fd=Rurl=http://www.thehindubusinessline.com/2008/10/07/stories/2008100752480100.htmcid=1254761692ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNF6aywOjYIxLFHHieM6kqaliF9_-QNet direct btax/b collections up 25.5% in Sept/a font size=-1 color=#6f6f6fnobrHindu Business Line/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-2fd=Rurl=http://www.business-standard.com/india/storypage.php%3Fautono%3D336569cid=1254761692ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNEssz_AGYvFd6Td6oUoTbO3s5wWAwDirect btax/b collection growth slows/a font size=-1 color=#6f6f6fnobrBusiness Standard/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-3fd=Rurl=http://www.livemint.com/2008/10/06155247/Direct-tax-collections-up-33.htmlcid=1254761692ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNE8_h780JrUZCqDQFRNDxrAjyS9_gDirect btax/b collections up 33% in first half of FY09/a font size=-1 color=#6f6f6fnobrLivemint/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/7-4fd=Rurl=http://www.rttnews.com/Content/AllEconomicNews.aspx%3FNode%3DB2%26Id%3D732956cid=1254761692ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNGYZ0n83NYo9bLCP38hQMVxpZ3oagnobrRTT News/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/7-5fd=Rurl=http://www.financialexpress.com/news/Direct-tax-revenue-smiles-on-Indian-economy-with-a-growth-of-32-54-/370108/cid=1254761692ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNFkm8v4acmjz5RgptNNrEx54xkCIgnobrFinancial Express/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254761692hl=ennobrall 25 news articles/nobr/a/font/div/font/td/tr/table

Polls show Obama in lead as debate turns to taxes, economy - Bizjournals.com

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/8i-0fd=Rurl=http://www.boston.com/news/politics/2008/articles/2008/10/07/character_attacks_emerge_in_mccain_obama_racecid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNGA5Zpwy7Grjtu_aUKHgKq0ZwBACAimg src=http://news.google.com/news?imgefp=ZF1UndxXQ7EJimgurl=cache.boston.com/resize/bonzai-fba/AP_Photo/2008/10/07/1223355861_6070/539w.jpg width=80 height=51 alt= border=1brfont size=-2Boston Globe/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/8-0fd=Rurl=http://www.bizjournals.com/phoenix/stories/2008/10/06/daily2.htmlcid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNHCtKuK6jdtoeV0g145oK_UXJVoQAPolls show Obama in lead as debate turns to btaxes/b, economy/abrfont size=-1font color=#6f6f6fBizjournals.com,nbsp;NCnbsp;-/font nobr13 hours ago/nobr/fontbrfont size=-1McCain is expected to follow up on running mate Sarah Palin’s jabs at Obama on btaxes/b, expansion of government and links to former Weather Underground member b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/8-1fd=Rurl=http://www.youtube.com/watch%3Fv%3DvyOAKp1PwoYcid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNFiTreTpSvlUDah85rsL0b9HLxf_wVideo: AP Campaign Minute/a font size=-1 color=#6f6f6fnobrAssociatedPress/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/vyOAKp1PwoY/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/vyOAKp1PwoYtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/8-2fd=Rurl=http://www.guardian.co.uk/world/2008/oct/07/uselections2008.barackobamacid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNF_DE3TjesajhmZBCXtYjw32PxgfARepublicans aim to undermine Obama by making it personal/a font size=-1 color=#6f6f6fnobrguardian.co.uk/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/8-3fd=Rurl=http://trailblazersblog.dallasnews.com/archives/2008/10/fact-check-does-obama-pal-arou.htmlcid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNGhuFAalu-L7isDFm0RsmQIbZx0wAFact check: Does Obama pal around with #39;terrorists#39;?/a font size=-1 color=#6f6f6fnobrDallas Morning News/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/8-4fd=Rurl=http://blogs.orlandosentinel.com/news_politics/2008/10/palin-targets-o.htmlcid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNEkJ0Cg5n6E7ngkvErr_JnQ4E2DrQnobrCentral Florida Political Pulse/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/8-5fd=Rurl=http://www2.presstelegram.com/ci_10641675cid=1254438696ei=lAbrSN-vOKGuyQSHjpGKCQusg=AFQjCNHgy9Ar8gXUsRk4kbYOIH0dKDXDhgnobrLong Beach Press-Telegram/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254438696hl=ennobrall 3,686 news articles/nobr/a/font/div/font/td/tr/table

Those who don’t file taxes still have time to get rebate - Enid News Eagle

Taxes - Google News

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