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 [...]

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 [...]

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 [...]

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 [...]