Treasury and the IRS on 15 April issued Notice 2024-33, waiving the IRC Section 6655 penalty for a corporation's failure to pay estimated tax payments attributable to a portion of the corporate alternative minimum tax (CAMT) due on or before 15 April 2024, or 15 May 2024 (for fiscal-year taxpayers whose tax year begins in February 2024). This is the second time the IRS has waived the penalty; in June 2023, the IRS waived the penalty for the 2023 tax year.

In issuing the waiver, the IRS cited the challenges of determining whether a corporation is subject to CAMT (i.e., whether an entity constitutes an "Applicable Corporation" under IRC Section 59(k) and determining the amount of a corporation's CAMT liability under IRC Section 55). While the Notice provides penalty relief, it does not clarify the application of the CAMT rules.

The IRS also will modify the instructions to Form 2220, Underpayment of Estimated Tax by Corporations, to clarify it will not impose the addition to tax based on a corporation's failure to make estimated tax payments of its CAMT liability for the relevant period.

The OECD/G20 Inclusive Framework BEPS 2.0 project continues to move forward. The Inclusive Framework reportedly is progressing in its development of additional guidance for the Pillar Two Global Anti-Base Erosion (GloBE) model rules, with expectations for a release in the coming weeks. Further developments from the OECD are also expected regarding the mechanism for exchanging GloBE information return information, which is hoped will reduce domestic filing requirements.

The OECD reportedly is making progress on several critical items in respect of Pillar One Amount B guidance, including identifying "low-capacity jurisdictions." Recall that the OECD on 19 February 2024, published a final report on Pillar One Amount B, which is intended to simplify and streamline the application of the arm's-length principle to baseline marketing and distribution activities, with a particular focus on the needs of low-capacity countries (the so-called Amount B approach).

Also, negotiations on the Pillar One Amount A Multilateral Convention (MLC) were expected to be completed by March 2024. This would enable members of the Inclusive Framework to sign the MLC by mid-2024. However, the MLC's expected adoption and release have been delayed, keeping the international tax community engaged with the evolving process.

The International Ethics and Standards Board for Accountants (IESBA) announced changes to the International Code of Ethics for Professional Accountants on 15 April as a result of its Tax Planning and Related Services project. The revisions create an ethical framework for professionals to follow when providing tax services and will apply to all tax planning activities starting after 30 June 2025.

There will be detailed guidance from the IESBA in the coming months on how to apply the ethical framework.