Subject: AMT -- Ruining our lives! Comment: In 1995 I joined a small startup company in PA called Laser Link. After 5 years of hard work, we had developed technology that was extremely valuable to communications DSL providers. During our 5 year ramp, our company paid employees in stock "options" in leiu of increased salaries, or sometimes in leiu of paychecks. In 2000, Laser Link was sold to Covad Communications for $400 million dollars. Over night our otherwise worthless stock options had transformed into enourmous potential stock. My wife and I both worked for Laser Link and were granted many options. We exercised the options we were vested in mid - 2000, when Covad's public stock was valued at $28 per share, our exercise price was approximately $1. All of our exercised ISO stock options were at the peak of Covad's value. In less than 6 months, through inexcusable business practices by Covad, Covad stock value plummeted to $2. The problem is that AMT still marked $28 as the high point. In 2001, we decieded to cash out all of our stock, and had a capitol gain of about $75,000. In 2001, we learned that our stock activites in 2000 had created an AMT event of $310,000. An amount we had never had the ability to pay. AMT is like a thief in the night, robbing us of our ability to be proper citizens. Every year that goes by we accumulate more penlaties and fees because we cannot possibly pay this tax. The IRS has been steadfast in thier dealing with us, liening our already meager income. AMT MUST be dealt with, it is an unfair and unjust tax. |