AICPA Comments on Interim Guidance Regarding Corporate AMT

Following the release of interim guidance (Notice 2023-7) by the Department of the Treasury and the Internal Revenue Service (IRS) addressing how the Corporate Alternative Minimum Tax (CAMT) applies to corporations, certain partnerships, troubled companies and affiliated groups of corporations that file consolidated tax returns, the American Institute of CPAs (AICPA) submitted comments and recommendations which identify and provide additional information regarding CAMT guidance provided in the Notice and for rules not included in the Notice.

The interim rules provided by Treasury and the IRS also address determining CAMT adjustments for depreciation and the treatment of federal income tax credits, as well as providing a safe-harbor method for determining whether a corporation is an applicable corporation subject to CAMT.

The AICPA submitted comments and recommendations on the following issues:

1. Financial Reporting and Accounting for Income Taxes
2. Passthrough Issues
3. General Concepts and Methods & Periods
4. Mergers & Acquisitions Issues

“The interim guidance released by Treasury and the IRS spotlights certain areas that should be addressed before the proposed regulations are released,” said Reema Patel, Senior Manager for Tax Policy & Advocacy with the American Institute of CPAs. “The AICPA’s recommendations and comments focus on four main issues that require some level of specificity and clarity in order to ensure tax compliance,” she continued.

Previously, the AICPA submitted two letters – October 28, 2021 and June 21, 2022 – to Congressional tax-writing committee leadership highlighting key issues with the corporate profits minimum tax, as well as a letter to Treasury and the IRS in October of 2022 requesting immediate guidance on the CAMT rules.