For tax years beginning after December 31, 2017, the corporate tax rate under §11(b) was amended to remove the graduated rates in favor of a flat 21%. Additionally, for tax years beginning after December 31, 2017, §55(a) was amended, repealing the corporate alternative minimum tax. This led to questions regarding the applicable tax rates for a corporation whose tax year began before January 1, 2018 but after December 31, 2017.
George Manousos and Jason Black of PricewaterhouseCoopers LLP’s Federal Tax Services out of Washington-National Tax Services joins talking tax’s host Joe Hagedorn to discuss the application of Internal Revenue Code’s §15 and how it applies to determine the applicable tax rate and alternative minimum tax rate for a fiscal year corporation. Additionally, George, Jason and Joe discuss the recently released IRS Notice 2018-38 which provides clarification on the application of §15.