Why read about the R&D tax credit on the web, when you can buy the book?
Nov 12th, 2009
P develops and uses production molds to manufacture automotive parts for its customers. P contracts with third-party toolmakers to build the production molds that P does not construct. After a third-party toolmaker finishes constructing a production mold, P purchases the mold and incurs additional design and engineering costs to modify the mold so that it [...]
Oct 23rd, 2009
The U.S. Tax Court recently issued its opinion in Deere & Co. et. al. v. Commissioner, 133 T.C. 11 (2009), holding that the taxpayer must include its foreign branch income in its research tax credit calculation. Deere & Co. received income from its branches in Germany, Italy and Switzerland. Deere & Co. filed a consolidated [...]
Oct 22nd, 2009
For each of the taxable years ended Oct. 31, 1997 through 2001, the total income that P, a consolidated group of corporations, reported in its consolidated return included amounts from the operations during each of those taxable years that the parent of P (Parent) conducted through its foreign branches (Parent’s foreign branch operations). In calculating [...]
Aug 12th, 2009
In United States v. Beltecno, the District Court for the Western District of Washington denied the taxpayers motion for summary judgment. The case involves amended tax returns the taxpayer filed to claim research tax credits for tax years 2001 and 2002. The amended tax returns were filed in 2005 and 2006, respectively. After paying the [...]
This matter comes before the Court on Defendant’s Motion to Dismiss. (Dkt. #13). In this case brought by the United States to recover tax refunds, Defendant argues that Plaintiff’s claims must be dismissed pursuant to FRCP 12(b)(6) because Plaintiff has failed to provide the Court with any “concrete and positive” evidence that it erroneously refunded [...]
Jul 16th, 2009
The Treasury Department released a new regulation to make it easier for taxpayers to claim a reduced research tax credit. While the two tax provisions are not identical, expenses that qualify for the research tax credit may also qualify for the research tax deduction. Taxpayers can claim both; however, a taxpayer must make an election [...]
In this appeal, the Director of Taxation, State of Hawai’i (Director or State) challenges the final judgment entered by the Tax Appeal Court of the State of Hawai’i (tax appeal court)[1] on July 14, 2008 (final judgment) and two orders entered by the tax appeal court on March 7, 2008 (collectively, summary judgment orders), the [...]
Jun 9th, 2009
In United States v. McFerrin, 570 F.3d 672 (5th Cir. 2009), the Fifth Circuit vacated the opinion of the lower court which concluded that the taxpayer was not entitled to the research tax credit claimed. McFerrin, a prominent chemical engineer, owns several chemical companies. McFerrin hired a tax consulting firm to prepare a research tax [...]
In FedEx Corp. v. United States, 2009 U.S. Dist. LEXIS 59856 (W.D. Tenn. 2009), a district court in Tennessee rejected the government’s interpretation of its research tax credit regulations for internal use software. In the late 1990′s, FedEx embarked on designing a new client-server billing system that could handle a large number of transactions. FedEx [...]