Guide to ISO-AMT in HR 1424 - 12 Nov 2008

What the new law does :

1. Removes all income (AGI) limitations (no more income phase-outs)





2. Refunds your AMT credits over 2 years





3. Abates all outstanding liabilities, interest, and penalties





4. Refunds all anything you have already paid (including penalties and interest) to the IRS associated with ISO-AMT liability

What the new law does NOT do :

1. Pay you interest on money the IRS has held over the years





2. Refund any interest/fees/cost associated with money you might have borrowed to pay the IRS





3. Change any law associated with Non-qualified stock options





4. Change the treatment of ISOs under the AMT moving forward





5. Affect state laws

Other details and interesting notes :

1. All refunds are paid 50% the first year and 50% the second year starting with Tax year 2008





2. The provision sunsets in Tax year 2012 (ie - beginning Tax year 2013, this provision is expired)





3. Your AMT credits must be at least 3 years old before you can get a refund





4. This provision only applies to AMT paid from Incentive Stock Options

MORE...http://www.reformamt.org/HR1424Guide.php