The guidance clarifies the 15% minimum policy introduced through Inflation Reduction Act.
The Department of the Treasury and the Internal Revenue Service (IRS) have released official guidance for the Corporate Alternative Minimum Tax, the domestic policy for a global agreement reached by the Organisation for Economic Co-operation and Development (OECD). In 2021, 130 countries agreed to develop a 15% minimum tax on the income of large corporations, which Congress voted into law through the Inflation Reduction Act in 2022. The guidance recently published is the result of that legislation.
“Treasury is working to provide clarity to taxpayers, so they can calculate their tax responsibilities under the Corporate Alternative Minimum Tax,” said Assistant Secretary for Tax Policy Lily Batchelder. “There are many complex accounting issues to consider as Treasury writes these rules, and today’s guidance clarifies key technical issues.”
As the Lord Leads, Pray with Us…
- For Secretary Janet Yellen to seek God’s guidance as she heads the Treasury Department.
- For Acting Commissioner Douglas O’Donnell as he oversees the IRS.
Sources: Treasury Department
