The Inflation Reduction Act established a corporate alternative minimum tax (CAMT), which imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations. The CAMT generally applies to large corporations with average annual AFSI exceeding $1 billion. Newly proposed regulations from the IRS provide definitions and general rules for determining and identifying AFSI. The regs also provide rules for determining if a corporation is subject to the CAMT. The IRS is waiving the penalty for a corporation’s failure to pay estimated tax with respect to its CAMT for a taxable year that begins after Dec. 31, 2023, and before Jan. 1, 2025.
Our Blog 