IR-2006-3, Jan. 4, 2006
WASHINGTON — The Internal Revenue Service is providing a new online tool to help individual taxpayers determine whether they are potentially subject to the alternative minimum tax (AMT).
The AMT Assistant helps taxpayers determine whether or not they may be subject to the AMT by automating the AMT Worksheet of the 1040 Instructions, called the “Worksheet to See if You Should Fill in Form 6251 – Line 45.” IRS estimates most taxpayers can make entries and get an answer in five to 10 minutes using the new application.
Taxpayers who file paper returns will benefit the most from the AMT Assistant because e-file software generally computes AMT liability automatically. The AMT Assistant is another in a series of steps being taken by IRS to reduce taxpayer burden.
“The alternative minimum tax causes a lot of hair pulling for millions of taxpayers each year. This new tool will help people understand if they have to pay or not,” said Mark W. Everson, IRS Commissioner. “This is part of the IRS effort to improve customer service and reduce return preparation time for taxpayers.”
The information provided is anonymous and will be used only for purposes of determining AMT liability. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it.
During the 2006 filing season, this new tool will be available on IRS.gov. Enter “AMT Assistant” in the Search box on the Web site, or use the link below. Taxpayers must complete a draft 1040 through line 44 and have that form available to use the AMT Assistant. There is also an “Additional Resources” section, with helpful information and links.