CAMT RuM&Ations: Exploring the Impact of Notice 2023-7 on Transactions

Episode 02-2023 | There are plenty of areas of uncertainty regarding the corporate alternative minimum tax (CAMT) for which guidance is urgently needed; arguably none is more pressing than the CAMT consequences of M&A transactions. In Notice 2023-7, the government provided some much-needed initial guidance in this area, addressing both the impact of an M&A transaction on whether a corporation is an “applicable corporation” subject to the CAMT and the determination of the “adjusted financial statement income” of the parties to certain nonrecognition transactions.

But the notice has raised more questions than it has answered. Can an acquisition retroactively change the CAMT status of an acquiring corporation? What is the scope of the covered nonrecognition rules? How about the CAMT consequences of many common M&A transactions not directly addressed by the notice, such as taxable transactions and nonrealization events? And what does any of this have to do with international tax?  

Join us as our host Gary Scanlon interviews Amy Chapman and Tim Nichols from the Corporate group in the firm's Washington National Tax practice to explore these issues and more on the latest episode of KPMG Inside International Tax.