The IRS has issued a notice that provides tax relief for corporations that didn’t pay estimated tax related to the new Corporate Alternative Minimum Tax (CAMT). You might need to consult with your CPA in South Florida to see how this could affect your business. The Inflation Reduction Act created the CAMT, which imposes a 15% minimum tax on the adjusted financial statement income of large corporations, especially those that work with reputable providers of accounting services, for taxable years beginning after 12/31/22. CAMT generally applies to large corporations with average annual adjusted financial statement income exceeding $1 billion. Considering the challenges associated with determining the amount of a corporation’s CAMT liability and whether a corporation is an applicable corporation subject to the CAMT, 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 12/31/22 and before 1/1/24. To gain further clarity on this matter, don’t hesitate to further seek assistance from your accounting firm in South Florida.
