The Inflation Reduction Act, which took effect in 2023, imposes a 15% Corporate Alternative Minimum Tax on companies averaging over $1 billion in profits for three consecutive years, a provision that unexpectedly captured unrealized crypto gains

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January 1, 2023

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The Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis’ and Moreno’s calls for the Treasury Department to “act swiftly.”

Lawmakers passed the Inflation Reduction Act in August 2022, which included a 15% Corporate Alternative Minimum Tax on firms whose average annual adjusted financial statement income exceeds $1 billion over any consecutive three-year period prior to the initial tax year, unless an exemption applies. At the time, people didn't think it would be relevant to digital assets, a person familiar said.

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Week 01 of 2023