Interim guidance from the IRS for the application of the corporate alternative minimum tax (AMT) offers an optional simplified method for determining applicable corporation status under Sec. 59(k).
The interim simplified method to determine applicable corporate status applies thresholds of $800 million for the general adjusted financial statement income (AFSI) test and $80 million for the second prong of the foreign-parented multinational group AFSI test and calculates AFSI by using the AFSI adjustments described in Prop. Regs. Sec. 1.56A-12 as well as other AFSI adjustments.
According to the IRS, the purpose of the interim simplified method is “to reduce compliance burdens and costs for certain corporations.” Read more.