AICPA Provides Comments on Interim Guidance Regarding Application of Corporate Alternative Minimum Tax
Washington, D.C. (March 28, 2023) – 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:
Financial Reporting and Accounting for Income Taxes
Passthrough Issues
General Concepts and Methods & Periods
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.
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 421,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
###
Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com