On April 15, the IRS released Notice 2024-33 (the "Notice"), offering limited relief from tax penalties for underpaying estimated income taxes arising from a corporation's alternative minimum tax ("AMT"). The AMT imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning after December 31, 2022. The relief extends to most companies' estimated tax installments due on or before April 15, 2024, and extends through installments due by May 15, 2024, in the case of companies with fiscal years beginning in February.
Opinions on the Notice have been mixed, with critics arguing that the relief is insufficient given its limited scope and timing. The relief applies only to the portion of AMT liability due in each installment, not the entire year's tax liability. The Notice also does not discuss potential penalties for late payment of taxes, which is significant because the Notice was released on the same day as the deadline to pay taxes for 2023 calendar-year taxpayers. Calendar-year taxpayers who have made their tax payments on time would not have been able to account for the relief provided in the Notice in calculating their estimated taxes. The IRS has suggested that a set of comprehensive proposed regulations on the corporate AMT will be released soon. Until then, companies that might fall under the purview of this tax will be challenged with the uncertainty of how to calculate estimated income tax payments.
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