Instructions For Form 4626 - 2010 printable pdf download

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 4626

Alternative Minimum Tax—Corporations

•

a. It was treated as a small

When figuring the amount to enter on

Section references are to the Internal

corporation exempt from the AMT for all

line 6, for any loss year beginning

Revenue Code unless otherwise noted.

prior tax years beginning after 1997.

before the change date, use the

corporation’s regular tax NOL for that

b. Its average annual gross receipts

What’s New

year.

for the 3-tax-year period (or portion

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Figure the limitation on line 4d only

thereof during which the corporation

For tax years beginning in 2010,

for prior tax years beginning on or after

was in existence) ending before its tax

eligible small business credits can

the change date.

year beginning in 2010 did not exceed

•

offset both regular tax and alternative

Enter zero on line 2c of the Adjusted

$7.5 million ($5 million if the corporation

minimum tax (AMT). Any unused credit

Current Earnings (ACE) Worksheet on

had only 1 prior tax year).

page 11. When completing line 5 of the

can be carried back five years and can

ACE Worksheet, take into account only

be used to offset regular tax and AMT

The following rules apply when

amounts from tax years beginning on or

in the carryback years. For more

figuring gross receipts under 2b above.

after the change date. Also, for line 8 of

information, see the Instructions for

•

Gross receipts must be figured using

the ACE Worksheet, take into account

Form 3800.

the corporation’s tax accounting

only property placed in service on or

method and include total sales (net of

after the change date.

General Instructions

returns and allowances), amounts

Note. No additional modification in

received for services, and income from

figuring AMT is required for exceptions

investments and other sources. See

Purpose of Form

related to any item acquired in a

Temporary Regulations section

corporate acquisition under section 381

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

Use Form 4626 to figure the alternative

•

or to any substituted basis property, if

minimum tax (AMT) under section 55

Gross receipts include those of any

any of the AMT adjustment

for a corporation that is not exempt

predecessor of the corporation,

modifications listed earlier applied to

from the AMT.

including non-corporate entities.

the item or property while it was held by

•

For a short tax year, gross receipts

Consolidated returns. For an

the transferor.

must be annualized by multiplying them

affiliated group filing a consolidated

by 12 and dividing the result by the

Once the corporation loses its

return under the rules of section 1501,

number of months in the tax year.

small corporation status, it

AMT must be figured on a consolidated

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The gross receipts of all persons

cannot qualify for any

CAUTION

basis.

treated as a single employer under

subsequent tax year.

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

Who Must File

must be aggregated.

Credit for Prior Year

Generally, file Form 4626 if any of the

Loss of small corporation status. If

Minimum Tax

following apply.

the corporation qualified as a small

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The corporation is not a “small

A corporation may be able to take a

corporation exempt from the AMT for its

corporation” exempt from the AMT (as

minimum tax credit against the regular

previous tax year, but does not meet

explained below).

tax for AMT incurred in prior years. See

the gross receipts test for its tax year

•

The corporation’s taxable income or

Form 8827, Credit for Prior Year

beginning in 2010, it loses its AMT

(loss) before the net operating loss

Minimum Tax — Corporations, for

exemption status. Special rules apply in

(NOL) deduction plus its adjustments

details.

figuring AMT for the tax year beginning

and preferences total more than

in 2010 and all later years based on the

Recordkeeping

$40,000 or, if smaller, its allowable

“change date.” The change date is the

exemption amount.

first day of the corporation’s tax year

Certain items of income, deductions,

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The corporation claims any general

beginning in 2010 (the first tax year for

credits, etc., receive different tax

business credit, any qualified electric

which the corporation ceased to be a

treatment for the AMT than for the

vehicle passive activity credit from prior

small corporation). Where this applies,

regular tax. Therefore, the corporation

years, or the credit for prior year

complete Form 4626 taking into

should keep adequate records to

minimum tax.

account the following modifications.

support items refigured for the AMT.

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The adjustments for depreciation and

Examples include:

Exemption for Small

amortization of pollution control facilities

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Tax forms used for regular tax

apply only to property placed in service

purposes that are completed a second

Corporations

on or after the change date.

time to refigure items of income,

A corporation is treated as a small

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The adjustment for mining

deductions, etc., for the AMT;

corporation exempt from the AMT for its

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exploration and development costs

The computation of a carryback or

current tax year beginning in 2010 if:

applies only to amounts paid or

carryforward to other tax years of

1. The current year is the

incurred on or after the change date.

certain deductions or credits (for

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corporation’s first tax year in existence

The adjustment for long-term

example, net operating loss, capital

(regardless of its gross receipts for the

contracts applies only to contracts

loss, and foreign tax credit) if the AMT

year), or

entered into on or after the change

amount is different from the regular tax

2. Both of the following apply.

date.

amount;

Cat. No. 64443L

Instructions For Form 4626 - 2010

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