These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.
This notice provides additional interim guidance regarding the application of the new corporate alternative minimum tax (CAMT), as added to the Code by the Inflation Reduction Act of 2022. Specifically, the notice provides additional rules for determining the adjusted financial statement income (AFSI) of a U.S. Shareholder when a controlled foreign corporation (CFC) pays a dividend to the U.S. Shareholder or another CFC and modifies and clarifies the interim guidance provided in Notice 2023-64 regarding the applicable financial statement (AFS) of members of a tax consolidated group.
Additional Interim Guidance Regarding the Application of the Corporate Alternative Minimum Tax under Sections 55, 56A, and 59 of the Internal Revenue Code
The notice of proposed rulemaking (NPRM) would implement the new section 45X advanced manufacturing production credit established by the Inflation Reduction Act of 2022 (IRA), Public Law 117-169. Section 45X provides a credit for the production (within the United States) and sale of eligible components and is designed to incentivize domestic production of certain green energy components including certain solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals. The proposed regulations would affect eligible taxpayers who produce and sell eligible components and intend to claim an advanced manufacturing production credit.
These final regulations implement the Internal Revenue Code’s de minimis error safe harbor exceptions for de minimis errors on information returns and payee statements, which treat erroneous information returns and payee statements as correct for certain penalty purposes if the errors are de minimis in amount. The final regulations prescribe the time and manner in which a payee may elect not to have the de minimis error safe harbor exceptions apply. The final regulations also update dollar amounts, definitions, and references in provisions relating to information return and payee statement penalties, to reflect statutory enactments that are not accounted for in the existing regulations.
26 CFR 1.6045-1; 26 CFR 301.6721-0; 26 CFR 301.6721-1; 26 CFR 301.6722-1; 26 CFR 301.6724-1
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