Why read about the R&D tax credit on the web, when you can buy the book?
MEMORANDUM OPINION WILLIAM L. STANDISH, District Judge. These suits focus on the efforts of Plaintiffs Bayer Corporation, its subsidiaries, and Bayer-Onyx (collectively, “Bayer”) to recover some $50 million in federal income tax payments to which Plaintiffs argue they are entitled as qualified research tax credits under 26 U.S.C. § 41. Now pending before the Court [...]
Jun 25th, 2010
In Procter & Gamble Co. v. United States, No. 1:08-cv-00608-TSB (Jun. 25, 2010), the District Court for the Southern District of Ohio concluded that the taxpayer did not have to include gross receipts from sales to a controlled foreign corporation in computing its research tax credit. The implications of this conclusion require some further thought.
Feb 22nd, 2010
The government recently issued Technical Advice Memorandum 201006027, applying the R&D tax credit rules for acquiring and disposing of business assets in the context of the I.R.C. § 963 possessions tax credit. This now defunct possession tax credit rewarded taxpayer’s for operating businesses in U.S. possessions, such as Puerto Rico. It incorporates the R&D tax [...]
Feb 19th, 2010
In R.H. Donnelley Corp. v. United States, No. 5:08-cv-00501 (ED NC 2010), the court addressed a unique situation involving the carryback of an R&D tax credit. The facts were as follows. The R&D tax credit was for tax year 1994. The taxpayer’s 1994 tax return was audited. No changes were made as a result of [...]
DAVID C. GODBEY, District Judge. This matter came on for trial before the Court on March 31, 2009 through April 3, 2009. This Order constitutes the Court’s findings of fact and conclusions of law. I. INTRODUCTION This is a tax refund suit. Trinity Industries, Inc. (“Trinity”) seeks a refund for certain qualified research expenditure (“QRE”) [...]
The United States District Court for the Northern District of Texas issued its opinion in Trinity Industries, Inc. v. United States, 3:06-CV-0726, concluding that the shipbuilder was entitled to part of its R&D tax credit. The court reached this conclusion by determining that, for some of its projects, the shipbuilder’s business components were the prototype [...]
Nov 21st, 2009
The deduction of research and experimental expenditures in an income tax return filed for the first taxable year beginning after December 31, 1953, and ending after August 16, 1954, although such deduction is not separately shown as such in the return, effectuates the adoption of the expense method provided by section 174(a) of the Internal [...]
Nov 19th, 2009
The research tax credit is set to expire once again. Under current law, the research tax credit is only available for expenses incurred before December 31, 2009. The House Ways and Means committee has released a summary of its Tax Extenders Act of 2009, which proposes to extend several expiring tax provisions, including the research [...]
Nov 12th, 2009
In TG Missouri Corp. v. Commissioner, 133 T.C. 13, the U.S. Tax Court recently found that property purchased from a third party qualifies as a supply expense for purposes of the research tax credit even though the taxpayer retains possession of the property. TG Missouri Corp is in the business of of manufacturing injection-molded products, [...]