There are two developments that significantly impacted businesses’ entitlement to tax benefits for the cost of research and experimental (R&D) expenditures. First, for amounts paid or incurred in taxable years beginning on or 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. 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 taxpayer’s entitlement to the claimed refund.
In his latest article for Bloomberg Tax’s recent Guide to R&D Tax Rules and Analysis, GTM’s Jonathan Forman provides answers to frequently asked questions on trending topics in the R&E and R&D space. He is joined by KPMG’s Hogan Humphries, TaxOps’ Jamie Overberg, and McCarter & English’s Lawrence Sannicandro.
Read the article here.
