Treasury, IRS Issue Guidance for Insurers on Book-Income Tax
New guidance on the book-income minimum tax (Notice 2023-20), issued on February 17, aimed at preventing “significant distortions” that could hurt the insurance industry. The guidance addresses situations in which the interplay of financial accounting rules and the new corporate alternative minimum tax could have harmful consequences for insurers. This is the second attempt by Treasury and the IRS to provide guidance on determining and implementing the new book tax. Comments on the guidance in the notice are due by April 3.