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September 12, 2023

BREAKING TAX NEWS | IRS issues additional interim guidance clarifying the application of the corporate alternative minimum tax

The IRS and the Treasury Department issued additional interim guidance (Notice 2023-64) clarifying the application of the corporate alternative minimum tax (CAMT), enacted under the Inflation Reduction Act of 2022. Notice 2023-64 describes rules the IRS intends to include in proposed regulations, which generally pertain to:

  • The determination of a taxpayer's applicable financial statement
  • The determination of adjusted financial statement income (AFSI) for members of a consolidated financial statement group
  • AFSI adjustments to prevent certain duplications and omissions
  • Tax consolidated groups
  • The application of IRC Section 56A(c) to certain foreign corporations
  • AFSI adjustments for certain income taxes, Qualified Wireless Spectrum Property and property to which IRC Section 168 applies

The Notice also includes rules on determining whether a corporation is an applicable corporation subject to the CAMT, as well as rules on aggregation under IRC Section 52, foreign-parented multinational groups, the treatment of investments in partnerships and the CAMT foreign tax credit.

The forthcoming proposed regulations would apply for tax years beginning on or after January 1, 2024. Taxpayers, however, may rely on the interim guidance for tax years ending on or before the forthcoming proposed regulations are published, as well as any tax year that begins before January 1, 2024 (regardless of when proposed regulations are published). A more detailed Tax Alert on Notice 2023-64 is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Maureen Sanelli, legal editor