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Bloomberg Tax: Answers to Your Burning R&E Expenditure and R&D Tax Credit Questions, 63 Tax Mgmt. Memo. No. 16

Bloomberg Tax: Answers to Your Burning R&E Expenditure and R&D Tax Credit Questions, 63 Tax Mgmt. Memo. No. 16

Jonathan Forman
Managing Director

There are two recent developments that significantly impact businesses’ entitlement to tax benefits for the cost of research and experimental (R&E) expenditures. First, for amounts paid or incurred in taxable years beginning on our after January 1, 2022, taxpayers are faced with the reality that R&E expenditures are no longer deductible but must be capitalized and amortized under §174 as amended by the 2017 Tax Cuts and Jobs Act (TCJA).

The second development, effective January 10, 2022, involved the IRS beginning to require taxpayers who claim the R&D tax credit under §41 in a refund claim to include specific and detailed information concerning the taxpayers entitlement to the claimed refund.

In their latest article for Bloomberg Tax’ Tax Management Memorandum, GTM’s Jonathan Forman, KPMG’s Hogan Humphries, TaxOps’ Jamie Overberg, and McCarter & English, LLP’s Lawrence (Larry) A. Sannicandro, provide answers to frequently asked questions about these changes and other trending topics in the R&E and R&D space.

Read the article here.

About The Author(s)

Jonathan Forman
Managing Director
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As Managing Director of Global Tax Management’s R&D Tax Credit Services practice, Jonathan leads the development and delivery of services that help large and multinational...