OMA Connections Partner, Tax Credits Group (TCG), reports there’s a new favorable change in the area of the R&D tax credit.
According to TCG: “Issued on September 11, 2017, IRS Directive, LB&I Memorandum No: LB&I-04-0917-005, creates a new safe harbor whereby the IRS will accept as sufficient evidence of Qualified Research Expenses (“QRE”) the adjusted ASC 730 financial statement R&D expensed for the credit year.
“The purpose for creating this safe harbor is to address the significant burden that taxpayers and the IRS face in determining the correct amount of R&D credits. The Directive is intended to relieve some LB&I audit resources that have historically been devoted to auditing this area, and to create an efficient manner for determining QRE for applicable taxpayers.”
Read more from TCG here. 11/3/2017