For tax year 2023, the IRS will waive the penalty for failure to make estimated tax payments for taxes attributable to a corporate alternative minimum tax (CAMT) tax liability. Affected corporations must still file the 2023 Form 2220, Underpayment of Estimated Tax by Corporations, even if they owe no estimated tax penalty. However, affected corporations may exclude the CAMT tax liability when calculating the required annual payment on Form 2220. Affected corporations must also include an amount of estimated tax penalty on Line 34 of their Form 1120, U.S. Corporation Income Tax Return (or other appropriate line of the corporation's income tax return), even if that amount is zero. Failure to follow these instructions could result in affected corporations receiving a penalty notice that will require an abatement request to apply the relief provided by this notice. See Notice 2023-42.
