Credits

A PATH to savings

This article examines the PATH act provisions and other developments favorable for taxpayers.

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.

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.

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.

Newsletter Articles

PRACTICE MANAGEMENT

Tax software survey

Our annual survey offers a look at how CPAs judged their tax preparation software in a wide range of types of practices.

NEWS

Congress enacts tax reform

Here are many of the most important provisions in the new law that affect both individual taxpayers and businesses. All changes were effective Jan. 1, 2018, except as noted.