IRS provides guidance on ‘blended’ tax rates for fiscal-year corporations
April 2018
Overview
Notice 2018-38 (the Notice), released by the IRS on April 16, provides guidance on the application of Section 15(a) in determining federal income tax (including the alternative minimum tax or AMT) of a corporation for a tax year that begins before January 1, 2018, and ends after December 31, 2017. The Notice provides fiscal-year taxpayers with computational examples for the computation of both federal income tax and AMT.
The takeaway
Corporations with tax years beginning before January 1, 2018, and ending after December 31, 2017 should consider how Section 15(a) will affect the computation of federal income tax and the AMT. The Notice provides numerical examples to illustrate how these computations are performed.
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