Brief Fact Summary. Petitioner had ten children for tax year 1994. They properly claimed 12 exemptions counting their children and themselves. They did not pay any alternative minimum tax.
Synopsis of Rule of Law. The alternative minimum tax is the difference between the tentative minimum tax and the regular tax.
Thus, while petitioner's religious beliefs are substantially burdened by payment of taxes that fund military expenditures, the Supreme Court has established that uniform, mandatory participation in the Federal income tax system, irrespective of religious belief, is a compelling governmental interest.View Full Point of Law
Issue. Are Petitioners liable for the alternative minimum tax?
Held. The Tax Court found that Petitioners are liable for the alternative minimum tax and affirmed the Commissioner.
Discussion. The alternative minimum tax is triggered by a number of factors, and in this case, the value of personal exemptions claimed by Petitioners. The plain language of the law is clear and unambiguous, and personal exemptions that such are excluded in the computation.