Accounting for the New Book Minimum Tax

The Inflation Reduction Act, signed into law recently by President Biden, includes a book minimum tax, which is raising the eyebrows of accountants everywhere.This new policy–a 15 percent tax applied to the financial statement income that companies report to their investors–is one of the law’s largest revenue raisers and joins plenty of other “minimum” taxes for multinational corporations, including GILTI and the OECD global minimum tax.Scott Dyreng, a professor of accounting at Duke University, and Daniel Bunn, executive vice president at the Tax Foundation, join Jesse to discuss how these minimum taxes work and, more importantly, how the accounting will work as companies aim to comply with all these new complex rules and tax increases.Links:https://taxfoundation.org/inflation-reduction-act/https://taxfoundation.org/book-minimum-tax-analysis/https://taxfoundation.org/inflation-reduction-act-minimum-tax/https://taxfoundation.org/inflation-reduction-act-accelerated-depreciation/Support the Show.Follow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show