GAAP income and the AMT: The case for earnings management

In this article, the authors examine the new federal Alternative Minimum Tax (AMT) taxes the largest US companies based on GAAP book income. This new law creates an incentive for companies to reduce their book income below their tax income to avoid paying the AMT. How does this action of intentionally reducing book income relate to the Business Judgement Rule? Other topics will be analyzed as well. This was submitted to "Tax Notes" and will be published in February 2024.

The paper contains an exciting analysis of NVIDIA and contains an "open letter" to the CEO of NVIDIA providing him advice on how to manage the AMT and increase NVIDIA's after-tax-cash-flow for the year 2023.