AICPA Urges Treasury and IRS to Issue Guidance on Corporate Minimum Tax
The American Institute of CPAs (AICPA) is urging the Treasury Department and the IRS to issue guidance on the corporate alternative minimum tax. In the letter, the AICPA said, “immediate guidance is especially needed with respect to the corporate alternative minimum tax because companies will struggle with reporting the impact of the minimum tax in financial filings given the number of significant issues delegated to the Treasury.” The new tax law signed by President Biden in August created a 15% minimum tax on large companies’ income, as reported on financial statements, starting in 2023.
IRS Gives Crypto Investors Some Answers in Tax Forms
The IRS has given cryptocurrency investors some clarity about how to report digital assets on their 1040 income tax forms. In the 1040 tax form draft instructions, which are not binding in a tax dispute, the IRS expanded how taxpayers should list their crypto transactions, including replacing the word “virtual currency” with “digital assets.” Although the additional clarity was welcomed by tax professionals, the IRS has still not issued guidance. Tax professionals say that guidance or law in the areas of staking and mining and in the treatment of NFTs is needed.
IRS Withdraws 2006 Proposed Rule on Previously Taxed Income
The IRS withdrew a proposed rule from 2006 on the exclusion from gross income of previously taxed earnings and profits. The IRS is preparing new regulations on previously taxed earnings. Withdrawing from the 2006 proposed regulations will help prevent possible abuse or misuse, such as inappropriate basis adjustments in certain stock acquisitions. Previously taxed earnings and profits, or PTEP, are foreign income that is brought back to the US after US taxes have already been paid.
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