Coalition for Tax Fairness --CTF-- Launched to Help Incentive Stock Option --ISO-- Victims of Alternative Minimum Tax --AMT--.
The Coalition for Tax Fairness (CTF), an organization working to resolve the Incentive Stock Option Alternative Minimum Tax (ISO AMT) crisis, today announced its formalized launch. The coalition, founded by ISO AMT victims, is working to address this growing crisis, which is causing extreme financial hardship for countless Americans. The AMT tax on ISOs has impacted many employees of small and large companies, often resulting in taxes up to and exceeding 300-400 percent of these employees' annual salaries. Worse yet, given the significant stock market decline that began in 2000, the taxes are imposed on "phantom" gains that will never be realized.
Unfortunately, the Alternative Minimum Tax on ISOs continues to subject taxpayers, both today and from past years, with egregious tax scenarios, requiring taxpayers to pay tens of thousands, hundreds of thousands, and even millions of dollars in "prepayment" taxes on unrealized income. These prepayments then become essentially useless tax "credits," which are returned so slowly (the maximum amount being $3,000 per year) that most ISO AMT victims will never recover their credits in their lifetime. CTF is working together with individuals and organizations such as ReformAMT, through education, legislative initiatives and grassroots efforts to help reform this outdated tax law and alleviate this catastrophic situation.
"As a personal victim of ISO AMT, I am extremely honored to have the opportunity to lead the Coalition for Tax Fairness in its efforts to make a positive impact on so many lives," stated Tim Carlson, President of the Coalition for Tax Fairness. "CTF thanks its growing number of corporate supporters for their tremendous support, individual volunteers who have banded together to make the coalition possible, and legislators who are working hard to resolve this crisis."
Testifying recently before the House Committee on Ways and Means, Subcommittee on Oversight, CTF Officer and founding member Nina Doherty detailed the inequities of the ISO AMT tax. "All the taxes we pay will generate useless tax 'credits', meaning that our prepayment of this tax is nothing more than an interest free loan to the government," stated Doherty. "Even worse, since we don't have the money and never did, being forced to make this loan literally destroys our financial life."
CTF is proposing a bill that encompasses the following provisions to alleviate unfair ISO AMT tax burdens and help prevent similar situations in the future:
--Helps create reasonable tax scenarios by ensuring that ISO taxpayers don't incur an unjust tax rate if stock values drop
--Puts in place compliance provisions to ensure everyone pays their fair share of AMT taxes, thereby helping to generate increased tax related revenue
--Accelerates AMT credits to help level the playing field for current ISO AMT victims
About the Coalition for Tax Fairness
The Coalition for Tax Fairness (CTF) is a non-partisan, non-profit organization that is coordinating a new legislative initiative to fix the current Incentive Stock Option Alternative Minimum Tax (ISO AMT) crisis. This growing problem was brought on by outdated and unfair laws affecting an unprecedented number of citizens, resulting in extremely high taxes on income that was never realized. Through a combination of education, legislation and grassroots efforts, CTF is seeking to raise awareness about the current crisis, and is proposing a principled legislative approach that helps ensure tax equity and fairness. CTF was founded by ISO AMT victims and is managed by a group of national volunteers. For more information, visit www.fair-iso.org.