The Office of Management and Budget (OMB) has determined that, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, the refundable corporate minimum tax credit claimed under sections 53 and 168(k)(4) of title 26, U.S. Code as in effect for taxable years beginning before January 1, 2018, is not subject to sequestration. Formerly, refund payments issued to, and credit elect and refund offset transactions for, corporations claiming refundable minimum tax credits for prior year alternative minimum tax liability were subject to sequestration. The OMB determination corrects and reverses the previous determination.
The IRS is in the process of implementing this change and will be returning any funds sequestered since 2013 under section 168(k)(4) during fiscal year 2020. The IRS is aware of all taxpayers whose refundable credits under section 168(k)(4) were subject to sequestration so taxpayers do not need to take any action at this time to receive their refund(s) and interest, if applicable. Additional information will be shared on the timing and process for these reimbursements.
Also see IR-2020-12.