Page 321 - Small Business IRS Training Guides

Prior Law

Under IRC section 55, prior law imposed an alternative minimum tax (AMT) which required corporations to calculate

tax under both the regular corporate income tax and the AMT, and determine its tentative minimum tax by limiting or
eliminating certain deductions, credits, and other tax preference items. If the corporation’s tentative minimum tax amount

exceeds its regular tax amount, the excess is the corporation’s alternative minimum tax, which it pays in addition to its
regular tax.

Practice Exercise 1

You are auditing a corporation with tax year ending December 31, 2017, and on the corporate return the corporation paid

alternative minimum income tax of $127,000. The corporation is required to pay alternative minimum income tax. Check
True or False.

 True  False

73233-102 12001-3 Tax Cuts and Jobs Act