The final regulations could provide opportunities for companies and industries that previously did not include expenditures for software developed primarily for their own internal use.
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Credits
How small businesses can apply the research credit to payroll taxes
Eligible small businesses can apply a portion of their research and development credit against their payroll tax liability, starting with 2016 tax years, under a new provision enacted in 2015.
Final R&D Internal-Use Software Regulations Provide More Certainty
Regulations settle much of the uncertainty for determining when software is developed for internal use.
Some Internal-Use Software Qualifies for Research and Development Credit
Taxpayers that develop software for their own internal use will be able to claim a credit for research and development expenditures in some cases.
Final Rules Allow Credit for Development of Internal-Use Software in Some Cases
Software a taxpayer develops for its own general and administrative internal use can qualify for the research and development credit under regulations finalized by the IRS.
R&D Tax Credit Changes Benefit Small Businesses
The PATH Act of 2015 included important changes to the R&D credit.
Practical Documentation of QRAs for the R&D Tax Credit
In the absence of records specifically created to document the research tax credit, taxpayers
often have to rely on estimates and an assortment of documents, interviews, and other evidence to substantiate expenditures that qualify for the research tax credits.
Recent Guidance Affecting Research Credit Carryforwards From Closed Years
The IRS recently promulgated final regulations that prohibit a taxpayer from increasing research credit carryforwards from closed years by electing the ASC method.
Practical Strategies for Using Sampling for the Research Tax Credit
This item discusses efficient strategies for a tax department to consider when planning a statistical sample to estimate qualified research
expenditures.
Rules Governing Internal-Use Software Are Proposed
The IRS issued long-awaited proposed regulations on what type of internal-use software qualifies for the Sec. 41 research credit. Although the new rules are proposed, not final, the IRS says it will not challenge taxpayers’ return positions that apply these rules currently.
Employers Have More Time to Claim Work Opportunity Tax Credit
The IRS announced that it was extending the time employers that want to claim the work opportunity tax credit have to file Form 8850 for 2014 hires.
Proposed Rules Would Govern Sec. 41 Credit for Software
The IRS issued long-awaited proposed rules on what type of internal-use software qualifies for the Sec. 41 research credit.
The Orphan Drug and Research Tax Credits: The “Substantially All” Rule
The research credit under Sec. 41 (when in effect) and the orphan drug credit under Sec. 45C are sometimes available for the same expenses incurred during the development of pharmaceuticals. Understanding how the credits work and how to maximize the benefit from both of them when they are both available can reduce taxes for eligible companies.
Alternative Simplified Research Credit Can Now Be Claimed on Amended Returns
The IRS issued temporary regulations permitting taxpayers to elect the Sec. 41(c)(5) alternative simplified credit on an amended return, as long as the taxpayer (or a member of its controlled group) did not elect to use any other method of calculating the research credit on an original or amended return for that year.
Regulations Permit Election of Alternative Simplified Research Credit on Amended Returns
The IRS issued temporary regulations permitting taxpayers to elect the Sec. 41(c)(5) alternative simplified research credit on an amended return.
Bringing Clarity to Fuel Excise Taxes and Credits
The federal excise taxes, tax credits, and exemptions for various types of fuel constitute a confusing area of the tax law. This item is intended to clear up much of the confusion faced by taxpayers and advisers alike when attempting to claim these tax credits.
Cloud Computing and the Credit for Increasing Research Activities
This item focuses on how a taxpayer’s rental expenses for cloud computing for purposes of research and development of new products and solutions should be treated under the Sec. 41 research tax credit.
“Beginning of Construction” for the Renewable Electricity Production and Energy Investment Tax Credits
The IRS clarified Notice 2013-29 defining the beginning of construction for purposes of the Sec. 45 renewable electricity production tax credit and the Sec. 48 energy investment tax credit.
Proposed Regulations Change Definition of R&D Expenditures
The IRS provided guidance on the treatment under Sec. 174 of research and development expenditures incurred in connection with the development of tangible property, including pilot models.
R&D Tax Credits for Food and Beverage Companies
Food manufacturers should look closely at the R&D tax credit even if, in the past, they did not believe their activities in developing new products or processes qualified as technological research.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
