SECTION 1. OVERVIEW

This notice provides the additional in­ terim guidance described in section 1 of Notice 2023-7, 2023-3 I.R.B. 390, that is intended to help avoid substantial un­ intended adverse consequences to the in­ surance industry from the application of the new corporate alternative minimum tax (CAMT), as added to the Internal Revenue Code (Code) ¹ by the enactment of § 10101 of Public Law 117-169, 136 Stat. 1818, 1818-1828 (August 16, 2022), commonly referred to as the Inflation Re­ duction Act of 2022 (IRA). In addition to announcing that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue proposed regulations (forthcoming proposed regulations) addressing the ap­ plication of the CAMT, sections 3 through 7 of Notice 2023-7 provided interim guidance regarding certain time-sensitive CAMT issues that taxpayers may rely on until the issuance of the forthcoming proposed regulations. Notice 2023-7 also stated that the Treasury Department and the IRS intended to issue additional inter­ im guidance expected to address, among other issues, certain issues related to the treatment under the CAMT of life insur­ ance company separate account assets that are marked to market for financial state­ ment purposes, the treatment of certain items reported in other comprehensive income (OCI), and the treatment of em­ bedded derivatives arising from certain reinsurance contracts. Sections 3 through 5 of this notice provide additional interim

guidance regarding these and other issues intended to be addressed by the forthcom­ ing proposed regulations. Taxpayers may rely on the guidance provided in sections 3 through 5 of this notice until the issuance of the forthcoming proposed regulations.

Section 2 of this notice provides a summary of relevant law and other infor­ mation underlying the rules described in sections 3 through 5 of this notice. Sec­ tion 3 of this notice describes rules that address certain CAMT issues regarding variable contracts and similar contracts. Section 4 of this notice describes rules that address certain CAMT issues regarding funds withheld reinsurance and modified coinsurance agreements. Section 5 of this notice describes rules that address certain issues that arise under the CAMT for cer­ tain formerly tax-exempt entities whose exemption from Federal income taxation was repealed by statute and as to which Congress provided special rules for de­ termining the Federal income tax basis in their assets held when the repeal of their exemption became effective. Section 6 of this notice describes the anticipated appli­ cability dates of the forthcoming proposed regulations. Section 7 of this notice re­ quests comments on the issues addressed in this notice. Section 8 of this notice pro­ vides drafting and contact information.