The Sec. 41 R&D tax credit continues to be an important incentive for many companies; however, the incentive effect is often dampened by challenges in identifying, documenting, and defending the credit.
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Credits
IRS Offers Guidance on Accounting for Black Liquor Credit Repayments
The IRS Chief Counsel’s Office addressed under what circumstances interest must accompany a repayment of the alternative fuel mixture credit received and during what year taxpayers converting the AFMC into the cellulosic biofuel producer credit should include that credit in income under Sec. 87.
Rehabilitation Credits Disallowed
The Third Circuit held that a corporate partner in a partnership was not entitled to claim historic rehabilitation credits passed through to it from the partnership because the corporation was not a bona fide partner in the partnership.
Individual Tax Update
This article covers recent developments affecting individual taxation.
R&E Credit Opportunities for the Construction Industry
Taxpayers in the construction industry may want to consider the Sec. 41 research credit.
Tax Court Defines Gross Receipts for the Research Credit
The Tax Court clarified that nonsales income is included in gross receipts for purposes of the Sec. 41 research credit.
What’s New With the New Markets Tax Credit?
The IRS published final regulations relating to how an entity serving targeted populations can meet the requirements to be a qualified active low-income community business under the provisions of the new markets tax credit program.
R&D Tax Incentives Around the World
With the R&D credit in limbo, now is the time to reevaluate the entire system by looking at other countries’ R&D tax incentives.
Going Green Yields Immediate Tax Savings
Taxpayers may not be aware of many tax incentives are available at the federal, state, and local levels to defray the costs of energy-efficient equipment and systems.
Federal Income Tax Treatment of Certain Transferable State Tax Credits
The emergence of online marketplaces and auction houses has provided a single point of contact for both sellers and buyers, making sales and purchases of transferable state tax credits more common.
Final Regs. Issued on Health Insurance Premium Tax Credits
The IRS issued final regulations governing the Sec. 36B health insurance premium tax credit enacted by 2010’s health care legislation.
Lack of Gross Receipts Does Not Preclude Taxpayers from Claiming R&D Credit
Some practitioners incorrectly assume that lack of gross receipts precludes taxpayers from taking the R&D credit. They should take a look at situations in which they may have forgone the credit because the taxpayer had no gross receipts to ensure that the taxpayer has obtained the maximum allowable credits available to it.
Work Opportunity Credits for Veterans
The IRS issued a notice that gives employers guidance on two new tax credits for qualified veterans and provides extra time to comply with some of the credits’ requirements.
Individual Taxation Developments
This article covers recent developments affecting individual taxation. The items are arranged in Code section order
Guidance Issued on Work Opportunity Credit for Veterans
The IRS issued a notice that gives employers guidance on two new tax credits for qualified veterans and provides extra time to comply with some of the credits’ requirements.
Low-Income Community Businesses and New Markets Tax Credit Regs.
The IRS issued final regulations on how entities serving certain targeted populations can qualify as active low-income community businesses for purposes of the Sec. 45D new markets tax credit.
Government Contractor Withholding Repealed and Veterans Job Credits Enacted
President Barack Obama signed into law repeal of a requirement that 3% of payments to any person for services or property be withheld by the federal or state governments or their instrumentalities or subdivisions (including multistate agencies).
Increased Focus on and Potential Ramifications of R&E Expenditures
Many taxpayers may have noticed a recent increased IRS focus on R&E expenditures. As a result of this increased focus, it is time for taxpayers to increase their focus as well.
Tax Court Rules on Homebuyer Credit When Former Residence Is Being Sold
The Tax Court held that a married couple’s old house, which they continued to use while trying to sell it, qualified as a principal residence, and therefore they did not meet the timing requirement to qualify for a first-time homebuyer credit when they purchased a new house.
Final Regs. Issued on Low-Income Community Businesses and New Markets Tax Credit
The IRS issued final regulations on how entities serving certain targeted populations can qualify as active low-income community businesses for purposes of the Sec. 45D new markets tax credit
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
