Federal Tax, Tax

New Alternative Corporate Minimum Tax for Large Corporations

The Inflation Reduction Act created the new corporate alternative minimum tax (CAMT). It imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning after Dec. 31, 2022. CAMT generally applies to large corporations with average annual adjusted financial statement income exceeding $1 billion. The IRS, in Notice 2023-42, is providing tax relief for corporations that didn’t pay estimated tax related to the CAMT. Specifically, the IRS will waive the penalty for a corporation’s failure to pay estimated income tax with respect to its CAMT for a taxable year that begins after Dec. 31, 2022, and before Jan. 1, 2024. Contact the Cg Team with questions. © 2023