Tax Reform

Tax Reform – Blended Rate for Fiscal Year Taxpayers (Regular and AMT)

The Tax Cuts and Jobs Act (TCJA) replaced the previous graduated corporate tax rate structure (top rate of 35%) with a flat tax rate (21%) and repealed the alternative minimum tax (AMT) for corporations for tax years beginning after December 31, 2017. A corporation with a fiscal year that includes January 1, 2018 will pay federal income tax and the AMT using a blended rate.