IRS Now Requires Supporting Documentation to be Filed with Research Credit Claims

As we previously reported in a recent post, the IRS Chief Counsel published a memorandum on October 15, 2021 regarding the documentation needed in order to successfully support a claim under the IRC Section 41 Investment Tax Credit for Increasing Research Activities. That section is widely known as “The Research Credit”. The Chief Counsel memo […]

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Response to Office of Chief Counsel Internal Revenue Service Memorandum Number 2021410F

New IRS Rules — We’ve Got Your Back! On Friday, October 15, 2021, the IRS released a 22-page memo, Office of Chief Counsel Internal Revenue Service Memorandum Number 2021410F, explaining why the IRS has the authority to demand specific contemporaneous documentation in support of tax credit claims under section 41 of the Internal Revenue Code […]

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New IRS Guidance Linking Tax Accounting with Financial Accounting Rules
6765 Tax Form

IRS has made changes to its audit guidelines for the federal Research Credit, particularly for companies with assets over $10 million. This change now requires larger claimants to modify their GAAP-compliant financial statements to include all qualified research expenditures in their stated Research and Development account. The change reflects the requirement that all claimed expenses […]

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Are You Eligible for R&D Tax Credits Related to COVID-19?
Wearing a mask

Beginning in March 2020, businesses around the United States were faced with the threat of COVID-19, putting them at risk of losses and closures, compromising bottom lines. As the economic news worsened, medical updates proved even more grim. With an increase in confirmed COVID-19 cases, the medical community suffered the stress of responding, but without […]

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Are Wealth Taxes a Good Idea?
Gold Bars

Massachusetts Senator Elizabeth Warren has suggested the implementation of a “Wealth Tax”. Many people are wondering what that means, and whether such a plan is a good idea. Here is some information about the issue as well as a few notes about our take on this approach.

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It is time to Write to Your Congressperson and Senators! The Shutdown Costs Money for All of Us!

Welcome to the new filing season! The government shutdown is affecting many parts of the administration, including the Internal Revenue Service, which is currently unable to accept new returns, process refunds, update desperately needed changes to the forms as required by law, nor to answer questions from taxpayers. This shutdown hurts everyone, most of all […]

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Research Tax Credit Eligibility Improving Under New Rules
Money Heap

The federal Research Credit has been helping manufacturers, software companies and others to keep engineering and manufacturing jobs here in the United States since its inception in 1981. However, it has long had limitations that prevented some taxpayers from gaining the benefits that were intended. For example, those in loss positions or who were subject […]

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Can Farmers Take Advantage of R&D Tax Credits?

Farms and farmers often feel the squeeze when it comes to cost. Farmers are some of the hardest working Americans who often get left out when tax bills are changed or amended. Many farmers are receiving smaller farm bills, and funds are constrained. Is there any reprieve for farmers in research and development (R&D) tax […]

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When Fairy Tales and Tax Law Collide
Fairy Tale

Once upon a time, manufacturing companies in the US got a tax deduction for exporting their manufactured goods to other countries. This was good because wages in America are high compared to other countries. The WTO (World Trade Organization) decided that this policy wasn’t fair to manufacturers in other countries, and so the rules were […]

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Section 41 Research Credit Preserved in New 2017 “TCJA” Tax Overhaul Bill

A special message from our founder Highlights: The Section 41 Research Credit is Preserved Manufacturers, Software Houses and Others are Eligible The Federal Credit Fosters Economic Growth Under TCJA Both Corporations and Pass-Through Entities Benefit from TCJA We have fielded many questions lately about the effect of the new tax legislation, which until recently was […]

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