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The IRS has extended the relief provided in Notice 2024-33, which waived a corporation’s estimated tax penalty to the extent that any underpayment of estimated tax was attributable to the taxpayer’s corporate alternative minimum tax (CAMT) liability.

• The IRS initially waived the penalty for corporations’ underpayment of estimated taxes attributable to corporate alternative minimum tax (CAMT) liability under Code Sec. 55, as per Notice 2024-33. The original relief applied to estimated tax installments due on April 15 or May 15, 2024, for tax years beginning in 2024.
• The IRS has now extended this relief to include any installment of estimated tax due on or before August 15, 2024, for tax years beginning in 2024, from corporate taxpayers to the extent the underpayment is attributable to the CAMT liability.
• Corporations must still file the 2023 Form 2220, Underpayment of Estimated Tax by Corporations, even if no penalty is owed.
• When calculating the required annual payment on Form 2220, corporations are required to exclude the CAMT tax liability.
• Corporation must report an amount of estimated tax penalty on Line 34 of Form 1120, U.S. Corporation Income Tax Return (or the appropriate line), even if it is zero.

It is of utmost importance to follow these instructions properly. Failure to do so could result in receiving a penalty notice, which would necessitate an abatement request to apply the provided relief.