Litigation Expenses and the Alternative Minimum Tax

This Article discusses the alternative minimum tax (AMT) trap, beginning in Part I with a description of the mechanics of the trap. This Part also examines the current Circuit Court split regarding the tax issue that underlies the AMT trap and previews the upcoming United States Supreme Court decision that will resolve the Circuit Court split. Part II of the Article then considers the implications of the trap on plaintiffs, their lawyers, defendants, and the courts. Finally, Part III describes and critically analyzes two bills that have been proposed, but have not yet been enacted, that were designed to solve the AMT trap.