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I am working on a return in ProConnect and encountering a persistent $4 million Alternative Minimum Tax (AMT) liability that I cannot resolve. The taxpayer's regular taxable income is only $80,719, and there are no apparent entries or adjustments that explain this high AMT liability. Here’s what I’ve checked so far:
- Form 6251 Input Screen: - I reviewed every line on the Form 6251 input screen, and all fields are empty. There are no manual entries contributing to the AMT calculation. 
 
- Stock Transactions (Schedule D): - The taxpayer participated in a Section 423(c) Employee Stock Purchase Plan (ESPP). However, I deleted all related stock sales from Schedule D, and the AMT liability still remains. 
- There were no incentive stock options (ISOs) involved, so AMT adjustments for ISOs should not apply. 
 
- Interest Income Screen: - The software directed me to the Interest screen, but there is no input for tax-exempt interest or private activity bonds that could explain the AMT adjustment. 
 
- Depreciation and Other Adjustments: - I checked the depreciation screens and found no differences between regular tax and AMT depreciation methods that could account for this liability. 
- Other miscellaneous income screens (e.g., carryovers, NOLs) also show no relevant entries. 
 
- Diagnostics and Hyperlinks: - I used ProConnect’s diagnostic tool and clicked through all blue-shaded hyperlinks on Form 6251 to trace back the source of the AMT calculation, but I haven’t been able to identify any data causing this issue. 
 
Despite these checks, the $4 million AMT liability persists, and I cannot locate its source. Could this be a software glitch or an automatic adjustment that ProConnect is applying incorrectly?
Specific Questions:
- I see on Form 6251 line 2g, there was a fictional $14,578,946 "Interest from specified private activity bonds exempt from the regular tax" showed up from nowhere. I checked the interest income input screen but not able to see anything. How do I remove this amount? 
Any guidance on how to resolve this issue would be greatly appreciated!