The big corporate tax increase from Washington may be aimed at giants such as Amazon and Bank of America, but the regulatory burden will also fall significantly on many smaller companies with overseas operations.
Businesses that have seen an unwanted boost in tax accounting costs since the 2017 Tax Cuts and Jobs Act will face even more reporting requirements under the 2022 Inflation Reduction Act.
That new law, signed by President Joe Biden in August, came after widespread reports of how some of the world’s most profitable multinationals had been paying comparatively low effective tax rates. For companies that report more than $1 billion in profits to shareholders, the act imposes a 15% corporate alternative minimum tax based on book income.
