Treasury, IRS Issue Guidance for Insurers on Book-Income Tax (1)

New guidance on the book-income minimum tax is aimed at preventing what might otherwise be “significant distortions” that could hurt the insurance industry, the Treasury Department said Friday.

The guidance, (Notice 2023-20), issued Friday, addresses situations in which the interplay of financial accounting rules and the new corporate alternative minimum tax could have unintended consequences for insurers, Treasury said.

“There are many complex accounting issues to consider as Treasury writes these rules, and today’s guidance clarifies key technical issues,” said Lily Batchelder, assistant Treasury secretary for tax policy, in a statement.

For instance, the guidance aims to ...