Breaking News from Capitol Hill: Is There Finally a Fix for Section 174?
With a rumored solution for 174 amortizations, the R&D tax credit could put cash back into businesses’ pockets before the next deadline. ERC is coming to an end, but the…
With a rumored solution for 174 amortizations, the R&D tax credit could put cash back into businesses’ pockets before the next deadline. ERC is coming to an end, but the…
A cornerstone of U.S. tax policy (and for many other countries) has been to encourage and support research and development (R&D) in this country. Policymakers on both sides of the aisle have long recognized the importance of incentivizing companies to engage in R&D.
Laura Lynn Gonzalez expected a tax refund this year, after her two-employee data-visualization company experienced a $30,000 loss. Instead, she said, she is facing a $100,000 federal tax bill that is about as large as her 2022 salary.
Software development firms are easily one of the largest businesses that can benefit from the Research and Development (R&D) tax credit because of their significant investment in innovation and the development of new technologies.
In an attempt to finetune the verification process for R&D tax credit, the IRS has decided to introduce some new requirements for information from businesses availing the claim. In a recent Chief Counsel memorandum, the agency stated that it wants more detailed information about all of the business components for the claims made for that year.