Internal Use Software Regulations Made Final
The IRS is making its proposed regulations for internal use software (“IUS”) final. The final regulations are largely the same as the proposed regulations. The proposed regulations were welcomed by the...
View ArticleIRS Says Internal Use Software Regs Apply in Total
The IRS issued CCA 201650012, which addresses the pre-2015 research tax credit regulations that apply to internal use software (“IUS”). This guidance addresses the question as to whether the two prior...
View ArticleUnited States v. Quebe, Case No. 3:15-cv-294 (S.D. Ohio 2017)
DECISION AND ENTRY SHARON L. OVINGTON, Magistrate Judge. I. INTRODUCTION “The research tax credit is one of the most complicated provisions in the Code.” Suder v. Comm’r, T.C. Memo. 2014-201, 108...
View ArticleGovernment Lawsuit to Recoup Research Tax Credits
The U.S. District Court for the Southern District of Ohio issued an opinion in U.S. v. Quebe. The case is an erroneous refund claim suit in which the government is seeking to recoup refunds paid based...
View ArticleCourt Agrees to Judgment Sample for R&D Credit Claim
In CRA Holdings U.S., Inc. v. United States, No. 15-CV-239W(F) (W.D.N.Y. 2017), the court considered whether sampling was appropriate for a research tax credit claim based on 6,100 projects. The...
View ArticleCRA Holdings U.S., Inc. v. United States, No. 15-CV-239W(F) (W.D.N.Y. 2017)
DECISION and ORDER LESLIE G. FOSCHIO, Magistrate Judge. In this tax refund action, Plaintiffs claimed a refund of $419,924 for Plaintiffs’ 2002 tax year and $1,029,402 for Plaintiffs’ 2003 tax year...
View ArticleIRS Guidance for R&D Payroll Tax Credit
The IRS issued Notice 2017-23 to provide guidance to small businesses that want to use the research tax credit to offset their payroll taxes. The PATH Act of 2015 provided this election to taxpayers;...
View ArticleFunded Research Tax Credit Article
The funded research rules can present a number of challenges. The rules can also limit drastically the amount of research tax credits available to taxpayers (1) who are paid to perform research (it...
View ArticleCourt Says IRS Has Sufficient Info for R&D Tax Credit Sample Size
The court entered another order in the CRA Holdings U.S., Inc. v. United States, No. 15-CV-239W(F) (W.D.N.Y. 2017) case. The order addressed a dispute over the appropriate sample to be used to evaluate...
View ArticleNew IRS Directive for Auditing Current Year QREs
The IRS’s LB&I Commissioner released a new directive about how certain qualified research expenses will be audited. We have already received inquiries as to whether clients should attempt to comply...
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