1120-US: Corporation does not qualify as a small corporation when the gross receipts test is met (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.

Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.


Why doesn't the corporation qualify as a small corporation when the gross receipts test is met?


Per Form 4626 instructions, a corporation is treated as a small corporation exempt from the AMT for its current tax year if that year is the corporation's first tax year in existence (regardless of its gross receipts for the year) or:

In order to qualify as a small corporation exempt from AMT, the Corporation qualified as a small corporation for all prior tax periods beginning after 1997 field must be marked in Screen AMT in the Taxes folder, unless this year is the initial tax year of the corporation and the Initial return field is marked in Screen 1120. If the corporation does not meet the requirements listed above, the corporation is subject to AMT.

Related topic: 1120 frequently asked questions

Share This