IRS Grants Relief to Corporations Who Failed to Pay the New Corporate Alternative Minimum Tax

In Notice 2023-42, the IRS granted relief to corporations that failed to pay the new corporate alternative minimum tax (AMT) under the Inflation Reduction Act of 2022. The Inflation Reduction Act created a new 15% minimum tax on the adjusted financial statement income of large corporations starting in tax years that begin after December 31, 2022. The new AMT applies to corporations with an average adjusted financial statement income of more than $1 billion per year. The IRS' rationale for the relief is that these corporations have faced challenges in determining the correct amount of the AMT owed. Further, some corporations have had difficulty in determining whether they are subject to the new tax in the first place. The IRS relief waives the penalty associated with failing to pay estimated taxes that are due because of the new AMT for tax years beginning after December 31, 2022 and before January 1, 2024. For more information on the corporate AMT, visit Tax Facts Online. : Q 8962. Note: Q is updated.