News: research credit

AMT Alternative Minimum Tax could impair R&D tax credit in Senate Bill

Although the R&D tax credit has been retained in the 2017 tax bills (both versions), in Conference Committee, the Congress will have to work out what to do with AMT. The House bill repealed the corporate AMT (Alternative Minimum Tax …

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R&D Credit – New IRS Safe Harbor for R&D Costs

On September 11, 2017, the commissioner of the Large Business & International (LB&I) Division of the IRS issued new guidance for taxpayers using ASC 730 to expense research and development costs on their financial statements. This directive (LB&I-04-0917-005) provides a …

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Funded Research R&D Tax Credit – Dynetics, Inc. v. United States New Case on Risk and Rights

A new decision from the Court of Federal Claims in Dynetics v. United States asks the question what type of research is considered funded research for the R&D tax credit.

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Favorable R&D Tax Credit Case Issued – Tax Court Option in Suder v. Commissioner

R&D Tax Credit Update 2014 – New Tax Court case on R&D credits rules favorably for taxpayer on almost all aspects of the case involving development of hardware and software. The taxpayer developed telephone equipment and related software and claimed …

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R&D Tax Credit – Progress on Permanent Research Credit – House Bill Passes

In an overwhelming vote of 271 to 131, the House of Representatives passed a bill making the R&D tax credit permanent, rather than continuing to extend the R&D credit for 2 year periods which has been the norm for many …

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R&D Tax Credit Bill – Proposes Extending the R&D Credit for 2014 and 2015

R&D Tax Credit 2014 Update:  The Senate Finance Committee last week passed a tax extenders bill that included the R&D tax credit. The research credit would be extended under this bill for 2014 and 2015 and included a key aspect …

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5th Circuit Largely Affirms Tax Court Decision in Shami v. Commissioner – R&D Credit Case

In the underlying TC Memo case Shami v. Commissioner, an R&D tax credit case, the Tax Court found that there was not sufficient evidence to show that two higher level managers were engaged in research activities for which the R&D …

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New R&D Tax Credit Regs – Intercompany Gross Receipts / Foreign Gross Receipts

The Internal Revenue Service (IRS) and Department of Treasury (Treasury) have proposed new regulations regarding the calculations of gross receipts in relation to intra-group transactions between members of a controlled group claiming the research and development (R&D) tax credit, as …

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FedEx Prevails in R&D Credit Case – Discovery Test does not Apply

In a case that had been working its way through the system on R&D credit, Federal Express (Fedex) has settle their lawsuit with Department of Justice and retained most of its R&D credits per a stipulated settlement that will avoid …

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R&D Case – Union Carbide (UCC) Appeal – Supplies Must be Direct R&D Expenses

In a decision dated September 7, 2012 relating to the Union Carbide (UCC) case, the Appellate Court agreed with the Tax Court on the topic of R&D tax credit supply costs. UCC argued it should be entitled to R&D costs …

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