Not quite - you must have exercised the options but not sold them before the value tanked in order for this to happen.
The Alternative Minimum Tax (AMT) will treat you as if you had income equal to the difference in the strike price and sale price on the day you exercised the options and you will be liable for the income tax on that amount.
Just being granted options that happen to be in the money will not cause this problem.
Slashdot Mirror
The Alternative Minimum Tax (AMT) will treat you as if you had income equal to the difference in the strike price and sale price on the day you exercised the options and you will be liable for the income tax on that amount.
Just being granted options that happen to be in the money will not cause this problem.