Credits
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 directive allows taxpayers to use R&D costs reported on FASB ASC financial statements as the starting point for computing QREs.
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.
This article examines the PATH act provisions and other developments favorable for taxpayers.
Eligible small businesses can apply a portion of their R&D credit against their payroll tax liability under a new provision enacted in 2015.
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.
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.
Regulations settle much of the uncertainty for determining when software is developed for internal use.
Taxpayers that develop software for their own internal use will be able to claim a credit for research and development expenditures 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.
The PATH Act of 2015 included important changes to the R&D 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.
The IRS recently promulgated final regulations that prohibit a taxpayer from increasing research credit carryforwards from closed years by electing the ASC method.
This item discusses efficient strategies for a tax department to consider when planning a statistical sample to estimate qualified research
expenditures.
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.
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.
The IRS issued long-awaited proposed rules on what type of internal-use software qualifies for the Sec. 41 research credit.
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.
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.
The IRS issued temporary regulations permitting taxpayers to elect the Sec. 41(c)(5) alternative simplified research credit on an amended return.
