The IRS has released a draft form and draft instructions to the form for the corporate alternative minimum tax (AMT).
In December, the IRS posted the seven-page draft Form 4626, Alternative Minimum Tax — Corporations, for the 2023 tax year.
The corporate AMT, created by the Inflation Reduction Act of 2022, imposes a 15% minimum tax based on the adjusted financial statement income (AFSI) of corporations with AFSI over $1 billion, beginning after Dec. 31, 2022.
The draft instructions state that unless a filing exclusion applies, all corporations must file Form 4626 with their tax returns to determine if they are an applicable corporation. If they are an applicable corporation, they must calculate their corporate AMT.
The draft instructions provide a safe harbor, simplified method for determining if a corporation is an applicable corporation. Learn more.