IRS Clarifies Coordination of Section 174 Method Changes and Accelerated Recovery Elections
The IRS recently issued Revenue Procedure 2026-32, providing welcome clarification for taxpayers that improperly deducted domestic research and experimental (R&E) expenditures in tax years 2022 through 2024 and are now seeking to align with the capitalization requirements enacted under the Tax Cuts and Jobs Act. The guidance confirms that taxpayers may, in the same 2025…

