IRS provides CAMT estimated payment relief


The IRS has issued guidance (Notice 2023-43) waiving estimated tax penalties arising from liability under the new corporate alternative minimum tax (CAMT). The relief applies to tax years beginning in 2023.


The CAMT was enacted in the Inflation Reduction Act and generally imposes a 15% tax on “adjusted financial statement income” (AFSI) for corporations with $1 billion or more in AFSI. It is effective for tax years beginning after 2022.


The IRS has released initial guidance on the CAMT (Notice 2023-7 and Notice 2023-20), but the tax is fairly complex and novel, and much additional guidance is needed. Recognizing the challenges taxpayers face determining any potential CAMT, the IRS provided that it will waive underpayments of estimated taxes under Section 6655 with respect to CAMT liability. The guidance provides no relief for additions to tax for underpayments of liability due by the original due date of the return under Section 6651.




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