The IRS released guidance on the new Sec. 45S tax credit for employers that provide paid medical and family leave.
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Credits
Using R&D credits to reduce payroll taxes: An overlooked opportunity for startups
This article discusses who qualifies to take the credit, how to make the election, the calculation and allocation of the credit, and how to report it.
Statistical sampling makes it easier to claim a research tax credit than ever before
Not just large but also medium-size and even smaller companies can more easily take a RTC now that the IRS allows multiple tax years under one statistical sample study.
A new safe harbor for LB&I taxpayer R&D credits
A new directive allows taxpayers to use R&D costs reported on FASB ASC financial statements as the starting point for computing QREs.
Gross receipts definition in R&D credit may limit its benefit to startups
Since the R&D tax credit is a nonrefundable credit, startup companies are frequently limited in their ability to claim it in the current tax year because
they have net operating losses.
A PATH to savings
This article examines the PATH act provisions and other developments favorable for taxpayers.
Interim guidance on small business research tax credit allows amended returns to claim credit for 2016
Eligible small businesses can apply a portion of their R&D credit against their payroll tax liability under a new provision enacted in 2015.
IRS issues reasonable internal-use software regulations for the research tax credit
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.
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.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
