Iowan (Rep. Leach, R-IA-2) Family, The Speltz's, ISO-AMT Nightmare
December 1992 - Ron Speltz took a job as a service technician with a small start up telecommunications firm in Cedar Rapids, Iowa called McLeodUSA. He receives stock options as part of his compensation.
Year 2000 - On the advice of their Financial Advisors, the Speltz's were instructed to exercise (buy) and hold their stock options.
March 2001 - The Speltz's find out from their accountant that they owe $252,893 after selling their stock for a gain of $1,600.
April 4, 2001 - The Honorable Zoe Lofgren (D-CA) introduces HR-1487 in the 107th Congress. HR-1487 garnered 62 bi-Partisan co-sponsors, referred to the House Ways and Means Committee, but dies in Committee.
June 29, 2001 - The Honorable Senator Joseph Lieberman (D-CT) introduces S-1142 in the 107th Congress. S-1142 was introduced with 2 co-sponsors, Mr. Lieberman and the Honorable George Allen (R-VA), but dies in Committee.
August 2, 2001 - The Honorable Richard Neal (D-MA) introduces HR-2794 in the 107th Congress. HR-2794 garners 48 bi-Partisan co-sponsors (50%/50%), is referred to the House Ways and Means Committee, but dies in Committee.
August 2, 2001 - The Honorable Senator Joseph Lieberman (D-CT) introduces S-1324 peer Senate bill to Mr. Neal's HR-2794 in the 107th Congress. S-1324 garners 5 co-sponsors (4 Democrats, 1 Republican), is referred to the Senate Finance Committee, but dies in Committee.
October 2001 - Offer in Compromise submitted to IRS.
December 14, 2001 - The Honorable Senators Charles Grassley (R-IA) and John Kerry (D-MA) introduces S-1831 in the 107th Congress. S-1831 garners 2 co-sponsors, is referred to the Senate Finance Committee, but dies in Committee.
June 30, 2002 - Speltz's interview with the Chicago Tribune.
September 18, 2002 - The Honorable Sam Johnson (R-TX) introduces HR-5398 in the 107th Congress. HR-5398 garners 12 bi-Partisan co-sponsors, is referred to the House Ways and Means Committee, but dies in Committee.
December 2002 - Federal Tax Lien filed by the IRS.
January 28, 2003 - The Honorable Sam Johnson (R-TX) introduces HR-433 in the 108th Congress. HR-433 garners 18 bi-Partisan co-sponsors, is referred to the House Ways and Means Committee, but dies in Committee.
February 14, 2003 - Light reading articles
March 4, 2003 - The Honorable John Kerry (D-MA) introduces S-503 in the 108th Congress. S-503 garners 4 co-sponsors (3 Democratic, 1 Republican - The Honorable Senate Finance Chairman, Charles Grassley), is referred to the Senate Finance Committee, but dies in Committee.
August 2003 - IRS rejects Offer in Compromise.
October 1, 2003 - "Prisoners of the AMT", Kiplinger's Personal Finance, by Mary Beth Franklin
Unless Congress changes the law, the living hell visited upon these Iowa families could strike you, too.
October 1, 2003 - "Middle Class Tax Bill Shocker", CBS Evening News, by Lee Cowan
"It's a horrible provision. It has really desperate and unfair impact on people. We are really sorry about the impact of this tax, but it is not for us to rewrite the laws, it's for Congress to act." Nina Olsen, IRS
June 6, 2004 - Speltz's Written Testimony submitted to House Ways and Means, Oversight sub-Committee - Hearing on Tax Simplification
June 15, 2004 - With donated miles, the Speltz family travels to Washington DC to attend the House Ways and Means, Oversight sub-Committee - Hearing on Tax Simplification. They meet and speak with members of the sub-Committee as well as staff from the Iowan Congressional offices.
September 2, 2004 - Senate Finance Chairman Grassley and Ranking Member Baucus letter of inquiry (14 questions) to Secretary of Treasury Snow regarding the Offer in Compromise (OIC) program.
September 23, 2004 - The Honorable Zoe Lofgren (D-CA) introduces HR-5141 in the 108th Congress the same day after providing testimony to the House Ways and Means Selecgt Revenue Measures sub-Committee on ISO-AMT at the suggestion of the Honorable Chairman McCrery.
September 30, 2004 - "The Issues: Tax Reform", CBS Evening News, by Lee Cowan
Last year when CBS News visited the Speltz's, they were hoping the campaign season would force attention to the issue. They've even gone to hearings on Capitol Hill to make their case as public as they could ... Ron Speltz says he and his wife offered the IRS everything they had but that wasn't good enough.
September 30, 2004 - CBS News Video
October 28, 2004 - Treasury's response to Senate Finance OIC inquiry of September 2, 2004
November 30 , 2004 - Senate Finance Leadership not satisfied with the IRS's October 28, 2004 response to their September 2, 2004 inquiry into the OIC and ETA programs. They request a Government Accountability Office investigation of the programs. Senator Press Release As of July 15, neither the Speltz's nor ReformAMT has seen the results of the GAO investigation of the OIC and ETA programs.
December 2004 - Tax Court Hearing.
December 2004 - With donated miles, the Speltz Family travel to Washington DC for their US Tax Court Hearing.
March 2005 - Tax Court rejection.
April 18, 2005 - Tax Court Offers No Help for Speltz Family with AMT on ISO Exercise, WebCPA, by Roger Russell
"...the Courts maintain that even though the law is unfair, it's unfair to everyone ... Therefore, they say it's up to Congress to fix, not the courts." Laurie Asch, Senior Tax Analyst at New York-based RIA
May 20, 2005 - Speltz Family submits testimony to the President's Tax Reform Advisory Panel.
May 20, 2005 - Letter from the Speltz Family of Iowa appealing to Iowan Chairman Grassley and Ranking Member Baucus of the Senate Finance Committee for assistance with ISO-AMT nightmare
June 8, 2005 - Speltz Family submits testimony to the House Ways and Means, Full Committee - Tax Reform Hearing
July 21, 2005 - In the 109th Congress, the Honorable Sam Johnson introduces HR-3385 with bi-partisan support of 62 co-sponsors.
August 29, 2005 - AMT bill could stop some taxpayers' option nightmare, WebCPA, by Roger Russell
The alternative minimum tax often results in taxes exceeding 400 percent of these employee's annual salaries, with the double whammy that they never see any actual income from the worthless stock.
August 31, 2005 - Speltz Family submits testimony to the House Ways and Means Select Revenue Measure sub-Committee - Hearing on Member Proposals for Tax Reform.
September 2005 - Appeal to the 8th District Court.
September 27, 2005 - With donated miles, Ron and June Speltz travel to Washington DC for a meeting with Chairman Grassley (R-IA), Representative Leach (R-IA-2), Representative Nussle (R-IA-1), and Senator Harkin (D-IA).
October 7, 2005 - The Speltz's, along with their extended family, friends, neighbors, and other affected Iowan colleagues, write Chairman Grassley.
November 22, 2005 - "Alternative Minimum Tax Sending Eastern Iowans to the Poorhouse", Cedar Rapids Gazette, by Dave Dewitte
Welcome to the world of Iowans who face massive tax bills on profits never realized.
December 29, 2005 - Chairman Grassley sends letter to the Speltz's
February 2006 - 8th District Court Hearing.
February 4, 2006 - After Stock Tanks, Tax Squeezes Iowa Families, Des Moines Register
The alternative minimum tax has added to their financial headaches by taxing presumed gains on stock that became worthless.
February 4, 2006 - Free Those Trapped by Unfair Tax, Des Moines Register, by the Editorial Board
When someone takes money that isn't theirs, it's called stealing. When the government does it, it's called the alternative minimum tax. But it's still stealing. And it should be made right.
March 24, 2006 - AMT Sending Tens of Thousands to Financial Ruin - Heartland Institute
Tens of thousands of Americans face financial ruin because they voluntarily reported incentive stock options to the Internal Revenue Service.
March 27, 2006 - June Speltz sends letter to Rep. Nussle and Senator Grassley regarding Jr. National Leadership Award for Alison Speltz.
March 30, 2006 - Ron and his mother, Vonnie, travel to Washington DC on donated miles to meet with Chairman Grassley.
June 5, 2006 - Iowa Governor Thomas Vilsack writes letters to both Iowa Senators and Rep. Nussle (IA-1) asking for help and consideration of HR-3385 and ISO-AMT relief.
July 15, 2006 - US Circuit Court of Appeals denies Speltz's motion.
July 29, 2006 - House passes Minimum Wage and AMT Extenders Tax Bill with HR3385 attached. The bill moves on to the Senate.
August 3, 2006 - Senate rejects bill.