Treasury Issues Initial Guidance on Book Minimum Tax (2)

The Treasury Department and the IRS filled in some of the blanks Tuesday on the new book-income tax—but nowhere near all of them, practitioners said.

Treasury and the IRS issued initial guidance (Notice 2023-7) clarifying some details about the corporate alternative minimum tax, or CAMT, just days before it takes effect Jan. 1. The tax imposes a 15% minimum levy on large companies’ financial-statement income, and the much-awaited guidance addresses some of the most pressing questions on who will be subject to the tax and what kinds of adjustments will be made to their financial-statement income for purposes before the ...