Vanessa monfort, the company's bookkeeper, prepared the 2010 tax returns for the corporation using an online tax program and feels she can prepare them again this year, but matt lever feels that he needs a cpa firm to prepare the company's taxes this year. When the subject of alternative minimum tax is brought up in your meeting, alex lee is appalled that he will have to pay more taxes than he already has to pay. Vanessa monfort thinks that the corporation is subject to the amt.

Your job is to explain what the amt is and why he might have to pay it. Activity writes a memo to alex lee, explaining the following in terms that he will understand:

• Explain the purpose behind the amt.

• Describe how and when the amt is applicable. Discuss what can be done to minimize the impact of the amt.

Key players role position and point of view vanessa monfort, bookkeeper

I prepared the taxes for 2010 and i feel that the company will be subject to the amt this year alex lee, owner of abi, inc. I pay payroll taxes, sales taxes, use taxes, income taxes for the business, and income taxes for myself.

Answer rating: 100% (QA)

Alternative Minimum Tax ATM Definition of AMT Alternative Minimum Tax AMT is a tax calculation in certain tax preference items are added into the adjusted gross income In Alternative Minimum Tax AMT s... View the full answer