AMTexpert: An Expert Decision Support System for the Corporate Alternative Minimum Tax

Abstract

AbstractAMTexpert is a prototype of an expert decision support system (EDSS) for the corporate alternative minimum tax (AMD. The corporate AMT was introduced as part of the Tax Reform Act of 1986 in order to force US corporations to pay more tax. The complicated and interrelated nature of the AMT system has made compliance and planning even more difficult for corporate taxpayers. Given the complexities of the corporate AMT, significant benefits may accrue from the development of an EDSS. In effect, an EDSS combines the judgmental benefits of an expert system (ES) with the computational benefits of a decision support system (DSS). AMTexpert is menu driven with six interdependent phases. The heart of the system is a ‘scoreboard’ used to compare and evaluate alternative tax positions. Context‐sensitive advice and explanations are provided to guide the user. The system was validated and evaluated by two groups of outside experts. AMTexpert demonstrates that an EDSS may be developed from existing tax and systems software.