H.R. 6275 would amend the Internal Revenue Code of 1986 to provide individuals temporary relief from the alternative minimum tax.
Detailed Summary
Alternative Minimum Tax Relief Act of 2008 - <b>Title I: Individual Tax Relief</b> - Amends the Internal Revenue Code to: (1) increase and extend through 2008 the alternative minimum tax (AMT) exemption amounts; and (2) extend through 2008 the offset of certain nonrefundable personal tax credits against regular and AMT tax liability.
<b>Title II: Revenue Provisions</b>- (Sec. 201) Defines an "investment services partnership interest" as any interest in a partnership held by a person who provides services to a partnership by: (1) advising the partnership about investing in, purchasing, or selling specified assets; (2) managing, acquiring, or disposing of specified assets; or (3) arranging financing with respect to acquiring specified assets.
Treats as ordinary income (i.e., income taxed at regular income tax rates) net income received by a partner from such an interest, except to the extent such income is attributable to the partner's invested capital. Sets forth rules for the treatment of losses with respect to such an interest.
Directs the Secretary of the Treasury to prescribe regulations for implementing tax rules relating to such interests. Exempts real estate investment trusts (REITs) and publicly traded partnerships from the application of ordinary income tax rules for such interests. Imposes tax penalties for underpayment of tax resulting from noncompliance with tax rules relating to such interests. Makes net income from such an interest subject to self-employment tax.
(Sec. 202) Denies any major integrated oil company (a company with an average daily worldwide production of crude oil of at least 500,000 barrels for the taxable year and gross receipts in excess of $1 billion for its last taxable year ending during calendar year 2005) a tax deduction for income attributable to the domestic production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof.
Reduces the tax deduction for income attributable to domestic production activities for taxpayers other than major integrated oil companies by 3% of the least of their: (1) oil related qualified production activities for the taxable year; (2) qualified production activities income for the taxable year; or (3) taxable income. Defines "oil related qualified production activities income" as income attributable to the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof.
Makes such provisions effective for taxable years beginning in 2009.
(Sec. 203) Prohibits any reduction of tax withholding for payments made by a U.S. subsidiary of a foreign parent corporation to a related subsidiary in any country that has a tax treaty with the United States, except for payments made directly to the foreign parent corporation.
(Sec. 204) Requires payment settlement entities (e.g., banks and third party settlement organizations) to report identifying information and the gross amount of reportable payment transactions (i.e., payment card and third party network transactions) to the Internal Revenue Service (IRS).
(Sec. 205) Expands the continuous tax levy on payments to vendors for goods and services to include payments for all property and services.
(Sec. 206) Amends the Tax Increase Prevention and Reconciliation Act of 2005 to: (1) repeal the adjustment to the estimated tax liability of corporations with at least $1 billion in assets for the third quarter of 2012; and (2) increase the estimated tax payments of such corporations in the third quarter of 2013 by 59.5%.
Status of the Legislation
Latest Major Action: 6/26/2008: Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on Finance.
Points in Favor
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Points Against
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Visitor Comments
Mike
Politicians need to eliminate this AMT altogether. It was enacted for 155 people.
Note the AMT IS STUPID!
Terry
It needs to be eliminated. I lost my job this year and had to take my 401K to pay off debt to survive. It was not a lot of money but pushed me into owing an additional $6K in taxes on top of the penalties I am paying. I need this money to get rid of debt so my family can survive.
Pete
Finding an "alternative" revenue stream for the AMT is like getting used to robbing a bank every year - since more revenue is obtained from AMT than originally expected. Congressional delays are hurting the economy, since people need to hold back their money until a decision is made. Index it for inflation every year (as the bill does) and work on a simpler, permanent solution.
kimbo
Vote Fair Tax! Get rid of the IRS and stimulate the economy by letting us keep OUR money! Americans know how they need to spend their money better than the politicians.
kimbo
http://www.fairtax.org
Absolute best way to explain what's happening and how to stop it:
http://www.fee.org/library/books/notyours.asp
http://jpetrie.myweb.uga.edu/frog.html