KPMG report: Draft forms provide insight into compliance burden imposed by new CAMT
A KPMG report that discusses draft CAMT forms, and data and computational results they require
Draft forms provide insight into compliance burden imposed by new CAMT
Newly released 2023 Draft Form 1120, U.S. Corporation Income Tax Return [PDF 404 KB] and 2023 Draft Form 4626, Alternative Minimum Tax - Corporations [PDF 396 KB], which were released without accompanying instructions, nonetheless provide insight into the extent of the compliance burden imposed by the new corporate alternative minimum tax (CAMT).
H.R. 5376 (commonly called the “Inflation Reduction Act” (IRA)) created the CAMT, which is a minimum tax based on financial statement net income that applies to applicable corporations (ACs). While there appears to exist a congressional intent to cabin the impact of the CAMT to a small pool of corporate taxpayers, the CAMT exacts an annual compliance burden on a larger universe of taxpayers. Specifically, in every year, a corporation will need to determine (1) whether it is subject to the CAMT (that is, whether it is an AC) and (2) if it is an AC, the amount of its CAMT liability, if any. In a corporation’s first year as an AC, both determinations will need to be made.
Read an August 2023 report [PDF 242 KB] prepared by KPMG LLP that discusses the draft CAMT forms, and the data and computational results they require.
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