Deducting Fines May Be Fine for GAAP, but Not for Corporate AMT

For taxable years beginning in 2023, about 78 US-based multinational corporations, by virtue of their average annual adjusted financial statement income (AFSI) exceeding $1 billion for the past three years (based on projections from their 2021 financial statements), will be subject to the Corporate Alternative Minimum Tax (CAMT) provided by the Inflation Reduction Act of 2022, according to a 2022 study by two University of North Carolina researchers and as noted in a 2023 US Congressional Research Service report on the CAMT.

A review of the 2023 business press indicates that many of those CAMT taxpayers may have 2023 ...