Page 324 - Small Business IRS Training Guides

Tax Cuts and Jobs Act

Provision 12002

Credit for Prior Year Minimum Tax Liability of Corporations

Overview

Introduction

IRC section 53 (1) allows the AMT credit to offset the regular tax liability for any taxable year; and (2) provides that the

AMT credit is refundable for any taxable year beginning after 2017 and before 2022 in an amount equal to 50 percent

(100 percent in the case of taxable years beginning in 2021) of the excess of the minimum tax credit for the taxable year
over the amount of the credit allowable for the year against regular tax liability. Effective for taxable years beginning after

December 31, 2017.

Objectives

At the end of this lesson, you will be able to identify key elements of this provision.

References

• IRC section 53, Credit for Prior Year Minimum Tax Liability

• IRM 21.7.4.4.9.3, Sequestration of Form 8827 Credit

• IRM 21.5.9.5.14.8, Sequestration on the Refundable Amount of the AMT Credit

• Form 8827, Credit for Prior Year Minimum Tax – Corporations

73233-102 12002-1 Tax Cuts and Jobs Act