The Internal Revenue Service and the Treasury Department released a notice Friday providing additional guidance on the corporate alternative minimum tax for billion-dollar companies.
Last year's Inflation Reduction Act created the CAMT, imposing a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years starting after Dec. 31, 2022. The tax typically applies to big corporations with average annual financial statement income of over $1 billion.
Notice 2024-10 includes rules for determining the annual financial statement income of a U.S. shareholder when a controlled foreign corporation pays a dividend to the shareholder or another controlled foreign corporation.
It also modifies and clarifies the rules in a previous notice, Notice 2023-64, for determining the applicable financial statement of a corporation that is included in a consolidated tax return. Earlier this year, the IRS issued Notice 2023-64, which clarifies and supplements Notice 2023-07 and Notice 2023-20. The Treasury and the IRS expect their upcoming proposed regulations will be in line with this interim guidance.
While the Internal Revenue Service has managed to reduce its backlog of unprocessed tax returns since the pandemic, one area where it's losing ground is in processing all the documentation for tax adjustments.
The growing number of fraud victims who suffer staggering financial losses often find themselves having to pay Uncle Sam for their missing income, experts say.
The amount of time that identity theft victims have to wait for tax refunds has increased as the Internal Revenue Service has shifted priorities, with some waiting nearly two years.