Instructions For Form 4626 - 2009 printable pdf download

2 0 09

Department of the Treasury

Internal Revenue Service

Instructions for Form 4626

Alternative Minimum Tax—Corporations

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Section references are to the Internal

a. It was treated as a small

When figuring the amount to enter on

Revenue Code unless otherwise noted.

corporation exempt from the AMT for all

line 6, for any loss year beginning

prior tax years beginning after 1997.

before the change date, use the

b. Its average annual gross receipts

corporation’s regular tax NOL for that

What’s New

for the 3-tax-year period (or portion

year.

•

thereof during which the corporation

Figure the limitation on line 4d only

The 90% AMTI limit on the alternative

was in existence) ending before its tax

for prior tax years beginning on or after

tax net operating loss deduction

year beginning in 2009 did not exceed

the change date.

•

(ATNOLD) does not apply to the portion

$7.5 million ($5 million if the corporation

Enter zero on line 2c of the Adjusted

of the ATNOLD attributable to

had only 1 prior tax year).

Current Earnings (ACE) Worksheet on

applicable 2008 and 2009 NOLs for

page 11. When completing line 5 of the

The following rules apply when

which the corporation made an election

ACE Worksheet, take into account only

figuring gross receipts under 2b above.

under section 172(b)(1)(H). See the

amounts from tax years beginning on or

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Gross receipts must be figured using

instructions for line 6 on page 7.

after the change date. Also, for line 8 of

the corporation’s tax accounting

the ACE Worksheet, take into account

method and include total sales (net of

only property placed in service on or

General Instructions

returns and allowances), amounts

after the change date.

received for services, and income from

Note. No additional modification in

investments and other sources. See

Purpose of Form

figuring AMT is required for exceptions

Temporary Regulations section

related to any item acquired in a

Use Form 4626 to figure the alternative

1.448-1T(f)(2)(iv) for more details.

corporate acquisition under section 381

•

minimum tax (AMT) under section 55

Gross receipts include those of any

or to any substituted basis property, if

for a corporation that is not exempt

predecessor of the corporation,

any of the AMT adjustment

from the AMT.

including non-corporate entities.

modifications listed earlier applied to

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For a short tax year, gross receipts

Consolidated returns. For an

the item or property while it was held by

must be annualized by multiplying them

affiliated group filing a consolidated

the transferor.

by 12 and dividing the result by the

return under the rules of section 1501,

number of months in the tax year.

AMT must be figured on a consolidated

Once the corporation loses its

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The gross receipts of all persons

basis.

small corporation status, it

treated as a single employer under

cannot qualify for any

CAUTION

section 52(a), 52(b), 414(m), or 414(o)

Who Must File

subsequent tax year.

must be aggregated.

Generally, file Form 4626 if any of the

Loss of small corporation status. If

Credit for Prior Year

following apply.

the corporation qualified as a small

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The corporation is not a “small

Minimum Tax

corporation exempt from the AMT for its

corporation” exempt from the AMT (as

previous tax year, but does not meet

A corporation may be able to take a

explained below).

the gross receipts test for its tax year

•

minimum tax credit against the regular

The corporation’s taxable income or

beginning in 2009, it loses its AMT

tax for AMT incurred in prior years. See

(loss) before the net operating loss

exemption status. Special rules apply in

Form 8827, Credit for Prior Year

(NOL) deduction plus its adjustments

figuring AMT for the tax year beginning

Minimum Tax — Corporations, for

and preferences total more than

in 2009 and all later years based on the

details.

$40,000 or, if smaller, its allowable

“change date.” The change date is the

exemption amount.

first day of the corporation’s tax year

Recordkeeping

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The corporation claims any general

beginning in 2009 (the first tax year for

business credit, any qualified electric

which the corporation ceased to be a

Certain items of income, deductions,

vehicle passive activity credit from prior

small corporation). Where this applies,

credits, etc., receive different tax

years, or the credit for prior year

complete Form 4626 taking into

treatment for the AMT than for the

minimum tax.

account the following modifications.

regular tax. Therefore, the corporation

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The adjustments for depreciation and

should keep adequate records to

Exemption for Small

amortization of pollution control facilities

support items refigured for the AMT.

apply only to property placed in service

Examples include:

Corporations

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on or after the change date.

Tax forms used for regular tax

A corporation is treated as a small

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The adjustment for mining

purposes that are completed a second

corporation exempt from the AMT for its

exploration and development costs

time to refigure items of income,

current tax year beginning in 2009 if:

applies only to amounts paid or

deductions, etc., for the AMT;

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1. The current year is the

incurred on or after the change date.

The computation of a carryback or

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corporation’s first tax year in existence

The adjustment for long-term

carryforward to other tax years of

(regardless of its gross receipts for the

contracts applies only to contracts

certain deductions or credits (for

year), or

entered into on or after the change

example, net operating loss, capital

2. Both of the following apply.

date.

loss, and foreign tax credit) if the AMT

Cat. No. 64443L

Instructions For Form 4626 - 2009

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