The IRS issued CCA 201650012, which addresses the pre-2015 research tax credit regulations that apply to internal use software (“IUS”). This guidance addresses the question as to whether the two prior IUS regulations, which the IRS had indicated that taxpayers could choose which regulation to rely on, can be applied piecemeal or if they have […]
The IRS is making its proposed regulations for internal use software (“IUS”) final. The final regulations are largely the same as the proposed regulations. The proposed regulations were welcomed by the tax practitioner community as they provide a clearer definition of what qualifies as IUS and provide several helpful examples. The final regulations can be […]
The research and development tax credit was made permanent and enhanced as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The research tax credit has been a temporary credit for over thirty years. Congress allowed it to expire and, recently, would re-enact the credit retroactively for short one or two year […]
The 2010 Tax Relief Act extended the research tax credit, which includes the basic and energy consortium research tax credit, for two years. The research credit was extended retroactively for 2010; thus, expenses incurred for research and experimentation in 2010 qualify for the credit. Taxpayers who have already filed tax returns for tax year 2010 […]
The Bayer Corp. & Subs v. United States, Civil Action Nos. 08-693, 09-351 (W.D. PA 2010), court case shows how important it is to place information and security controls on information gathered when preparing a research tax credit.