The Internal Revenue Service has provided interim guidance for insurance companies and certain other taxpayers for the new corporate alternative minimum tax.
The guidance is under Notice 2023-20PDF. Comments are being accepted through April 3.
The CMT imposes a 15 percent-minimum tax on the adjusted financial statement income of large corporations for taxable years beginning in 2023. Taxpayers affected by the tax are large corporations, including insurance companies, with average annual adjusted financial statement income exceeding $1 billion.
The provides interim guidance for determining income as it relates to (1) variable contracts and similar contracts, (2) funds withheld reinsurance and modified coinsurance agreements, and (3) the basis of certain assets held by certain previously tax-exempt entities that received a "fresh start" basis adjustment.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind