The IRS announced that it will open a supplemental claim process to help third-party payers and their clients resolve incorrect claims for the employee retention credit. The deadline is Nov. 22.
Advertisement
Topics
Credits
A process of experimentation: Production expenses for the R&D tax credit
When claiming research and development tax credits, a taxpayer may be able to include production activities in the “substantially all” calculation by presenting detailed evidence that those production activities constitute a process of experimentation under Sec. 41(d)(3)(A).
Recapture considerations for Inflation Reduction Act credits
The Inflation Reduction Act not only created $663 billion in new energy-related credits over 10 years, but it also expanded opportunities to monetize many of the energy tax credits through direct payment and transfer elections.
Regs. cover green energy incentive wage and apprenticeship requirements
Under new final regulations issued by the IRS, taxpayers can generally increase the base amount of certain credits or deductions by five times when they meet prevailing wage and apprenticeship requirements.
Rights for the R&D credit and Sec. 174
When claiming the Sec. 41 research and development credit for funded research, a taxpayer must determine whether it possesses economic risk related to the success of the research and retains substantial rights to the research results. How that correlates to a “right to exploit” research under Sec. 174 still needs clarification.
The clean fuel production credit: A new incentive regime
The Sec. 45Z credit for production of low-emission motor fuels will largely replace a diverse set of expiring fuel incentives when it goes into effect in 2025.
The research credit: Adaptation exclusion
A recent Tax Court case sheds light on the uncertainty test for qualified research activities and its relation to the adaptation exclusion of expenditures eligible for the Sec. 41 research credit.
Final regs. issued for new, previously owned clean vehicle credits
The final regulations, which the IRS issued Friday, also provide rules regarding the critical mineral and battery component requirements for the new clean vehicle credit, and they add a new test for mineral content.
The research credit: Documenting qualified services
Court decisions delineate common pitfalls for companies claiming the Sec. 41 credit of substantiating qualified research expenditure amounts and whether the company followed a process of experimentation.
House OKs $78B tax bill with changes to ERC and child tax credits
The bill, which now goes to the Senate, also delays amortization of research or experimental costs and restores tax breaks for companies from 2017’s Tax Cuts and Jobs Act.
Energy credit prevailing wage and apprenticeship rules
The IRS and Treasury released a guidance package to help taxpayers engaged in qualified renewable energy projects comply with the prevailing wage and apprenticeship requirements created by the Inflation Reduction Act, P.L. 117-169.
Apportioning tax benefits among members of a controlled group
A controlled group can choose how it apportions tax benefits and other items among its members, with rules for certain credits and for pension and profit-sharing plans.
ERC voluntary disclosure program requiring 80% claim payback launched
The IRS announced the launch of a program that will allow businesses to repay money from questionable employee retention credit claims and avoid penalties and interest.
Time to clean up the fleet? Sec. 45W might help
While Sec. 30D is often the most well-publicized clean vehicle tax break, Sec. 45W offers a broader credit to businesses purchasing clean commercial vehicles.
Worth amending for: Credits for sick and family leave
Two valuable refundable income tax credits available to self-employed taxpayers may have been missed in 2020 and 2021.
The true cost of ERC noncompliance
The eligibility requirements for the ERC are strict, despite dubious assertions that all employers qualify, propelled by a manufactured fear of missing out.
Defining software development costs
Software development costs that historically may not have been identified as qualified research expenditures for purposes of the Sec. 41 tax credit for increasing research activities need to be identified to comply with the capitalization requirement under Sec. 174.
IRS issues guidance on requirements for home energy audits
The IRS provides requirements for home energy audits for taxpayers that want to claim the energy efficient home improvement credit, which taxpayers can rely on until proposed regulations are issued.
Credit for increasing research activities in a short tax year
How a short year affects the determination of the credit for increasing research activities under Sec. 41 is often an afterthought for many taxpayers and their tax advisers.
New advanced energy project tax credits under the Inflation Reduction Act
For taxpayers that intend to pursue these credits, it’s a good idea to start planning now and register on
the eXCHANGE portal sooner rathernthan later.
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.
