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Corporate Alternative Minimum Tax Refunds Won't Face A Reduction

Tax Reform eliminated the alternative minimum tax (AMT) for corporations (but not for individuals).

A corporation can use its remaining AMT credit carryforwards to offset future regular income taxes. In addition, corporations will receive 50% refunds for any remaining credits from 2018-2020;and the remainder will be refunded in 2021.

The IRS in November announced due to sequestration rules (rules requiring a balanced budget) that corporate AMT refunds and whistle-blower awards would be reduced by 6.8%.

This week the IRS reversed its position and announced that corporate AMT refunds would be paid in full.

However, whistle-blower awards will still be subject to sequestration reduction.

For a consultation on corporate tax planning, please contact me.

Richard Pon CPA, CFP