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Research & Development Tax Credit Compliance Campaigns

The Internal Revenue Service has recently stepped up efforts to improve compliance across a variety of areas in the Large Business & International (LB&I) division, most notably with a focus on the R&D Tax Credit.

As the LB&I division begins to take a fresh look at R&D Tax Credit claims, it is important for taxpayers who have claimed or will claim the R&D Tax Credit to proactively prepare and sufficiently document their claims. Withum is always here to assist with such efforts, with the first step being a complimentary assessment via a brief discussion with our experts.

The IRS Research Issues Campaign will specifically address the research credit and research and experimental expenditures issues. Research issues under IRC § 41 refer to any regulatory requirements to claim the research credit for:

  • IRC § 41(d) issues of whether and to what extent qualified research activities were performed by the taxpayer to develop new or improved business components.
  • IRC § 41(b) issues of whether expenditures estimated and allocated to qualified research are allowable and credible.
  • IRC § 41(c) issues of whether the taxpayer properly substantiated an increase in qualified research expenses over their base amount.
If you have any questions and your R&D Tax Credit Claim, please contact a member of Withum’s R&D Tax Credit Experts.

Taxpayer issues involving the research credit and research and experimental expenditures under IRC §§ 41 and 174 are some of the most prevalent tax issues within LB&I, utilizing significant examination and taxpayer resources. The campaign will employ various treatment streams including issue-based examinations, form updates, and requests for guidance. Other treatment streams will be considered as the campaign progresses. The campaign objective is to promote voluntary compliance, focus resources on the highest risk research issues and increase consistency of examinations.

Are you prepared for an IRS examination on your R&D Tax Credit? Withum’s team of R&D Tax Credit experts are here for you to ensure your R&D Tax Credit claims meet substantiation requirements. Whether you are concerned about an R&D Tax Credit claimed in the past or whether you require help with your current R&D Tax Credit claim, please let us know how we can best be of service to you.

R&D Tax Credit Services

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