Washington, D.C. (July 8, 2024) The American Institute of CPAs (AICPA) has submitted a request to the Department of the Treasury and the Internal Revenue Service (IRS) to clarify the instructions of Form 4626, Alternative Minimum Tax—Corporations, to allow corporations already identified as “applicable corporations” to skip Part V of the form.
The current filing requirement to complete Part V represents a substantial compliance and administrative burden for taxpayers, and the information included in Part V does not appear to provide commensurate value to the IRS with respect to a corporation that has already determined it is an applicable corporation for purposes of the Corporate Alternative Minimum Tax (CAMT).
The AICPA is recommending that IRS update the instructions to Form 4626, Part V to indicate that, consistent with Part I of the Form 4626, Applicable Corporation Determination, Part V is only required for taxpayers that are not an applicable corporation. The clarification would ensure that corporations that have already determined themselves to be an “applicable corporation” for purposes of the CAMT may skip Form 4626, Part V.
“The current filing requirement to complete Part V represents a substantial compliance and administrative burden for the taxpayers,” says Reema Patel, AICPA’s Senior Manager, Tax Policy & Advocacy. “The information included in Part V does not appear to provide commensurate value to the IRS with respect to a corporation that has already determined it is an applicable corporation for purposes of the CAMT.”
About the American Institute of CPAs
The American Institute of CPAs® (AICPA®) is the world’s largest member association representing the CPA profession, with 400,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
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Contact: Veronica L. Vera
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Veronica.Vera@aicpa-cima.com