Negative AMT adjustments for the current year caused by timing differences are offset by the positive AMT
adjustments in prior or future tax years also caused by timing differences.

Question

Quizplus · Accepted Answer

This statement is true. The AMT system accounts for timing differences in income and deductions by allowing negative adjustments in the current year, which are then offset by positive adjustments in future or prior years. This is meant to prevent taxpayers from manipulating their income and deductions to avoid paying AMT.

Negative AMT Adjustments for the Current Year Caused by Timing