Subject: ISO-AMT Forcing Bankruptcy Comment: Kimhoe Pang Date: March 20, 2005 10362 Greenwood Ct. #5 Cupertino, CA 95014 Dear Senator/Congressman/Congresswoman, I am writing to ask for your support and would appreciate your taking a moment to read this letter. My name is Kimhoe Pang. I am a software engineer of Network Appliance. I exercised some stock option in year 2000 under the Incentive Stock Options (ISO) scheme. I did not sell any of the exercised stock to get profits. The ISO exercise created a huge AMT tax. I have $367,684.00 tax due in 2000. It amount is more than 3 time of my annual salary. This tax payment actually becomes a credit and can never be recovered by me. In essence, I can lose all the investment money, and also other assets, simply to create a tax credit in my IRS account. Due to the stock crises in 2000, I did not have enough money to pay tax. I filed an Offer in Compromise (OIC) and the OIC was denied after two and half years. IRS has started the collection process and has put a lien on all my properties. I am the only one who brings income to my family. My family (five people) still live in a two bedrooms rented apartment. However, the IRS officers told us that they only concern about the tax we have not paid. They are regardless about the fairness of the tax. We are still facing financial crisis. IRS already starts collection process. We have to pay the huge tax that is base on the profit we never make. We need your help to have the IRS to stop the collection activities. We respectfully ask that you further investigate the disastrous consequences of the Alternative Minimum Tax and please support all efforts towards reform. Sincerely, Kimhoe Pang |