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:
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.