EY Urges Treasury to Exempt Split-Offs From New Book Tax

Ernst & Young LLP is urging the Treasury Department to issue guidance to prevent split-off transactions from being taken into account for purposes of the new corporate alternative minimum tax established by Democrats’ economic package.

“We respectfully request the Treasury Department to issue immediate guidance that excludes financial reporting gain resulting from a ‘split-off’ for purposes of the Corporate AMT,” EY said in a Thursday letter to Treasury and IRS officials.

The letter comes after President Joe Biden on Tuesday signed into law a 15% minimum tax on large corporations’ income as it is reported on financial statements. ...