IRS Mulls More Guidance on Corporate Alternative Minimum Tax (1)

IRS officials are considering more guidance on the new tax on companies’ book income, including on whether and how much of a taxpayer’s income from cancellation of debt—including forgiveness of Covid-19 relief loans—will be subject to the tax.

Double-counting issues under the tax are also a major focus of ongoing guidance work, an official said, speaking Wednesday at a District of Columbia Bar tax conference.

Income from cancellation of debt counts as book income, but it’s partly excluded from the income subject to the corporate alternative minimum tax under guidance that the IRS issued in December. The CAMT, which took ...