- 11 - stock acquired upon the exercise of those options subsequently lost all of its value. The taxpayers argued that under those circumstances, application of the AMT was unfair. Although not unsympathetic to the taxpayers’ plight, the Court responded, id. at 176, as follows: The unfortunate consequences of the AMT in various circumstances have been litigated since shortly after the adoption of the AMT. In many different contexts, literal application of the AMT has led to a perceived hardship, but challenges based on equity have been uniformly rejected. See, e.g., Alexander v. Commissioner, 72 F.3d 938 (1st Cir. 1995), affg. T.C. Memo. 1995-51; Okin v. Commissioner, 808 F.2d 1338 (9th Cir. 1987), affg. T.C. Memo. 1985-199; Warfield v. Commissioner, 84 T.C. 179 (1985); Huntsberry v. Commissioner, 83 T.C. 742, 747-753 (1984); Prosman v. Commissioner, T.C. Memo. 1999-87; Klaassen v. Commissioner, T.C. Memo. 1998-241, affd. without published opinion 182 F.3d 932 (10th Cir. 1999). In Kenseth v. Commissioner, 259 F.3d 881, 885 (7th Cir. 2001), affg. 114 T.C. 399 (2000), the Court of Appeals for the Seventh Circuit commented: it is not a feasible judicial undertaking to achieve global equity in taxation * * * . And if it were a feasible judicial undertaking, it still would not be a proper one, equity in taxation being a political rather than a jural concept. * * * * * * * * * * We believe that here, too, the solution must be with Congress. * * * * * * * Petitioners’ materials * * * show that Congress is well aware of the claimed inequities resulting from the application of the AMT and has, so far, declined to act.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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