In a Sept. 24, 2026, letter to the IRS and U.S. Treasury Dept., the American Institute of CPAs (AICPA) urged regulators to change how the 15% corporate alternative minimum tax (CAMT) applies to financially distressed companies. The AICPA says that forgiven debt should match regular income tax rules to reduce compliance burdens and prevent unexpected tax owed. It also recommends excluding bankruptcy-related income and certain gains to make the restructuring process easier and more likely to succeed. Further, the AICPA says companies emerging from bankruptcy shouldn’t be assessed the CAMT based on their pre-bankruptcy adjusted financial statement income.
