The IRS has issued additional interim guidance on the corporate alternative minimum tax (CAMT) that provides several new or modified adjustments to adjusted financial statement income (AFSI) for certain capitalized costs, troubled companies, and corporate transactions. (Notice 2026-7, 2/18/2026)

CAMT Background and Guidance Timeline

The CAMT, enacted as part of the Inflation Reduction Act (P.L. 117-169), imposes a 15% minimum tax on the AFSI of certain large corporations. Since its enactment, the Treasury Department and the IRS have been working to clarify the complex rules, issuing comprehensive proposed regs (REG-112129-23) in September 2024.

Following feedback on the complexity of those proposed rules, the IRS has issued a series of notices providing interim guidance. Notice 2025-27 introduced an optional simplified method for determining applicable corporation status, allowing many corporations to more easily determine if they are subject to the CAMT.\

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