alternative minimum tax (amt)

  • The AMT on modified taxable income plus tax preferences is paid if and to the extent it exceeds a taxpayer’s regular tax. The AMT is imposed to reduce the tax advantages derived from preferential treatment given to certain individuals and corporations that don’t pay tax on income derived from certain sources or enjoy special deductions.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).