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Author: cavallino Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121351  
Subject: AMT tax...file extension? 945? Date: 2/23/2001 4:05 PM
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So I am in a situation where I excercised some ISO stock options in 2000 with at a price per share that is
about 6 times the current price of the stock. I didn't sell any during 2000 so I have a huge AMT
tax that I must pay by April 15th.

However I would really hate to sell basically all of my shares exercised last year plus a few more
just to pay the taxes on them. I believe in the stock and believe it is undervalued and expect to
see it maybe double in the next six months (no expectation it will be back at t 6x or 12x peak
anytime soon).

So I have sold enough to pay about 1/4 of my AMT taxes (and I've already paid quite a bit in
estimated last year) but I'd rather not pay the rest. What are my options here?

* File for an extension and only pay some amount now and take the 8% interest penalty that
accrues until I pay in August
* File a 9465 Installment Agreement Request and try to pay on a monthly basis for a while. I'd
pay this off when the stock returned to a reasonable level. Does this have any other negatives or
credit issues?

Are there any other creative solutions? I can't borrow enough to pay for the taxes (the AMT
taxes I owe is well over 5x my pre-tax salary)...and don't know if I would want that level of risk.
I might consider borrowing for a small amount of it...and I'm still working these issues out.

The other issue is that I am restricted to when I can actually sell stock and my trading window
closes at the end of the month. So I need to decide now whether I keep selling or do something
else.

Thanks!
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