Research Tax Credit

  NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date. This Audit Techniques Guide is presented in several chapters. These chapters can be accessed and then [...]

Introduction Presented here is a suggested process for the conduct of the interviews of taxpayer employees or other knowledgeable individuals (interview subject) in connection with the examination of the Research Credit. Examiners should not that this is not a list of questions so much as a procedural framework for conducting the interview. It should also [...]

Research and experimental expendi­tures. Research or experimental costs previously deducted pursuant to sec­tion 174(a) of the Code are not sub­ject to recapture upon the subse­quent sale of the resulting technology. Rev. Rul. 72-528 revoked. Rev. Rul. 85-186 ISSUE Whether “tax benefit” recapture as ordinary income of research or experi­mental expenditures previously de­ducted pursuant to section [...]

Research or experimental expen­ditures; accounting methods change. A taxpayer may not change without the consent of the Com­missioner its treatment of research or experimental expenditures from the deferred expense method to the expense method of accounting by fil­ing an amended federal income tax return. Rev. Rul. 83-138 ISSUE May a taxpayer change its treat­ment of [...]