15 December 2023 BREAKING TAX NEWS | Treasury issues additional interim guidance on applying the CAMT to shareholders of controlled foreign corporations and determining the applicable financial statement of members of a tax consolidated group Today, the Treasury Department issued additional interim guidance (Notice 2024-10) on applying the corporate alternative minimum tax (CAMT) to shareholders of controlled foreign corporations (CFCs) with respect to covered CFC distributions. The Notice also modifies and clarifies prior guidance on determining the applicable financial statement (AFS) of an affiliated group of corporations filing a consolidated return for any tax year. In the Notice, Treasury reiterated its intent to issue proposed regulations that will align with the guidance in the Notice, as well as previously published interim guidance.
Additionally, the Notice modifies and clarifies prior guidance in Notice 2023-64 on the AFS that an affiliated group of corporations must use when filing a consolidated return. The Notice also clarifies AFS prioritization for a taxpayer that is a member of a foreign-parented multinational group. Taxpayers may rely on the interim guidance in the Notice for covered CFC distributions received on or before the date forthcoming proposed regulations are published. Similarly, taxpayers may rely on the interim guidance in the Notice for determining the required AFS for tax years ending before the date forthcoming proposed regulations are published. The Notice indicates, however, that taxpayers may rely on the guidance in the Notice, regardless of when the forthcoming proposed regulations are published, for (1) covered CFC distributions received before January 1, 2024, and (2) AFS determinations for tax years beginning before January 1, 2024. Document ID: 2023-9012 |