Corporation AMT and Estimated Tax

Cross References

Notice 2023-42 For tax years beginning after December 31, 2022, corporations (other than S corporations, regulated investment companies, or real estate investment trusts) with average annual adjusted financial statement income exceeding $1 billion per year are subject to the alternative minimum tax (AMT).

In light of challenges associated with determining financial statement income that is used to determine whether a corporation is subject to AMT, the IRS has waived any underpayment of estimated tax penalty on the portion of the corporation’s tax liability attributable to AMT. Thus, a corporation determines the amount that it is required to pay through estimated tax payments without including any amount attributable to its AMT liability.