It remains uncertain whether certain corporations close to the $1 billion average annual AFSI threshold are within the scope of CAMT.
H.R. 5376, commonly called the “Inflation Reduction Act of 2022” (IRA), added a new corporate alternative minimum tax (CAMT)—a minimum tax based on financial statement income that is imposed on applicable corporations.
While CAMT’s broad contours have been constructed, certain rules remain uncertain for the 2023 tax year. In particular, it remains uncertain whether certain corporations close to the $1 billion average annual adjusted financial statement income (AFSI) threshold are within the scope of CAMT.
Read a February 2024 report* [PDF 2.8 MB] prepared by KPMG LLP tax professionals that focuses on the specific challenges and opportunities faced by “scope bubble corporations.” This report is the third in a series examining CAMT.
* This article originally appeared in Tax Notes Federal (February 12, 2024) and is provided with permission.