Monte A. Jackel, Lecturer/Principal, Jackel Tax Law, published a letter to the editor in Tax Notes Federal, a weekly publication of Tax Analysts, Fairfax, VA. In this letter to the editor, Jackel discusses whether the nonrecognition rules of the Internal Revenue Code should apply in computing the new corporate book minimum tax.

Tax Notes Federal
Date: October 31, 2022
By: Monte A. Jackel
Letter To The Editor - Of Nonrecognition Transactions and Financial Statement Income

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“The purpose of the financial accounting rules is to help ensure that the financial information provided to investors and regulators is accurate, reliable, and consistent. The question at issue in the news story is whether the IRC nonrecognition rules should control because the investment has not changed in a substantive sense, or whether accuracy in measuring economic gains and losses on the same transaction regardless of the size of the corporation (that is, whether the corporation is or is not an “applicable corporation”) should control to give investors a more accurate economic picture of the investment before and after the change in investment caused by the applicable IRC nonrecognition rule.”

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To read the full letter by Monte A. Jackel, click here.