Subject: ISO-AMT Tax Policy has put the IRS in Control of Our Future Comment: Dear Chairman Mack & Vice-Chairman Breaux We're enclosing our submitted testimony to the Ways & Means Committee given yesterday 6/22/05. We hope with your combined support leadership too rectify this grave injustice. Fond regards, The Curcio's Statement from Joyce E. Curcio To Honorable Chairman William M. Thomas and House Ways and Means Committee – Tax Reform Hearing Dear Chairman Thomas and Committee Members: My name is Joyce Curcio and I am submitting this statement on behalf of my husband, Matthew Curcio. We, along with so many others, have been affected by the Alternative Minimum Tax and I would like to share with you our particular story. Matthew and I were living in San Francisco in 1998 when he obtained a position with Biomarin Pharmaceuticals based in Marin County, CA.. He was a biochemist, earning roughly $50,000 per year. He also received Incentive Stock Options (ISOs). The market was doing fairly well at that time and Matthew thought about cashing in on some of the options. He was advised by a financial consultant for the company to hold onto the options which he did. Subsequently, the market took a large drop and the value of that stock was lowered considerably. When tax time April 2000 came along, it came as a shock when we were told by our CPA that we now owed @$20,000 to the state of California and @$60,000 to the Federal Government. How was it possible to be taxed on so-called “income” that was never realized? We were completely incredulous as to why this was happening. We paid off the state to satisfy that debt. The IRS bill was something we could not even fathom paying. We continued to receive threatening letters, with warning of liens, garnishing of wages and ultimate financial ruin. As long as we have been working citizens, we have duly paid our taxes, every year and in full. However, this tax seemed so unfair and unjust that we simply had to fight it. We contacted a tax attorney and looked into the OIC program. Subsequently, we moved back east to be closer to our families. Due to the move, as well as the slow process of this negotiation, our case is still in OIC in 2005. Our lives are literally at a standstill. We will owe a hefty legal bill when all of this is resolved. We are not able to purchase a home due to our outstanding tax bill and our “bad credit”. The stress and strain this has put on us is unimaginable. Please, I urge you to take action and reform this outdated tax code and lift the burden for so many hard-working American like ourselves. Joyce Curcio Resident of Rhode Island’s 1st Congressional District |