Edward A. Birts - Page 9




                                        - 8 -                                         
               “The statutory scheme governing the imposition and                     
          computation of the alternative minimum tax is clear and precise,            
          and leaves, on these facts, no room for interpretation.”  Okin v.           
          Commissioner, T.C. Memo. 1985-199, affd. per curiam 808 F.2d 1338           
          (9th Cir. 1987).  Thus, there is no justification, in the instant           
          case, to ignore the plain language of the statute, particularly             
          where, as here, “we have a complex set of statutory provisions              
          marked by a high degree of specificity.”  Huntsberry v.                     
          Commissioner, 83 T.C. 742, 748 (1984).                                      
               The alternative minimum tax serves to impose a tax whenever            
          the sum of specified percentages of the excess of alternative               
          minimum taxable income over the applicable exemption amount                 
          exceeds the regular tax for the taxable year.  See sec. 55(a),              
          (b)(1)(A), (c), (d)(1); cf. Huntsberry v. Commissioner, supra at            
          744.  “Alternative minimum taxable income” essentially means the            
          taxpayer's taxable income for the taxable year determined with              
          the adjustments provided in section 56 and increased by the                 
          amount of items of tax preference described in section 57.                  
               In Huntsberry v. Commissioner, supra, we held that tax                 
          preferences are a significant, but not necessarily an                       
          indispensable, component of alternative minimum taxable income.             
          Accordingly, the taxpayers in that case were held liable for the            
          alternative minimum tax computed in accordance with the specific            
          provisions of section 55, notwithstanding the fact that the                 






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011