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Layla Asali Discusses Corporate AMT CFC Double-Counting Relief in Tax Notes

"Treasury Strongly Hints at Corporate AMT CFC Double-Counting Relief"

Tax Notes

Layla Asali discussed the U.S. Department of the Treasury's indication that guidance related to the corporate alternative minimum tax (AMT) will provide relief from potential double-counting of controlled foreign corporation (CFC) distributions during her presentation at a virtual District of Columbia Bar Taxation Community webinar on October 20. Asali noted she was still concerned that relief could be tied to the CFC distribution qualifying for the section 245A dividends received deduction or an exclusion for previously taxed earnings and profits. "Is that a relevant consideration when we are talking about how to prevent this type of double counting in the corporate AMT?" Asali asked. She put forward several hypotheticals and questions to Isaac Wood, Attorney-Advisor, U.S. Department of the Treasury Office of Tax Policy, to give Treasury the chance to provide more clarity on the statute. "Regardless of whether the earnings actually would be eligible for [section] 245A in the regular system, what we should be thinking about in the corporate AMT is were they already taxed here?" Asali also pointed to whether there was any rationale to reach a different result in any of the CFC distribution fact patterns.