The IRS will return sequestered funds to businesses that were affected by a recent Office of Management and Budget determination regarding the Balanced Budget and Emergency Deficit Control Act of 1985.
The OMB determined that the refundable corporate minimum tax credit claimed under Sections 53 and 168(k)(4) of Title 26 of the U.S. Code as in effect for taxable years beginning before Jan. 1, 2018, is not subject to sequestration. Less than 1,000 businesses were affected by the OMB determination.
Formerly, funds for corporations claiming refundable minimum tax credits for prior-year Alternative Minimum Tax liability were subject to sequestration.
The IRS, which has a complete list of all taxpayers affected, will restore any amounts sequestered since 2013. Funds and applicable interest will be sent out during fiscal year 2020. Funds due a company will be used to offset current tax liabilities first.
