President Focuses on Innovation and R&D
Last night, President Obama focused squarely on innovation and R&D in the first third of his State of the Union address. Obama emphasized that the country faced a "Sputnik moment" and set goals around innovation, basic research funding, clean energy incentives,...
R&D Tax Credit Extended – December 17, 2010
The tax extenders package, which includes the R&D tax credit, was passed in the House last night and the President is expected to sign the bill later today. The package includes application of the R&D tax credit retroactive to January 1, 2010 and extends the...
New Tax Court Motion on Gross Receipts : Hewlett-Packard
In a Motion file with the Tax Court on Monday December 6, 2010, the IRS agreed that Hewlett-Packard Co. does not need to include amounts accrued from its controlled foreign subsidiaries (CFSs) in computing its gross receipts for purposes of the Research Credit, which...
Contract Research – Year End Tax Tips
As to contract research incurred close to year's end (whether fiscal or calendar) we often get questions on which costs can be counted as Qualified Research Expenses (QRE) in the current tax year. Under Treas. Reg. Section 1.41-2(e), a contract research expense is 65...
This Week in Congress – November 29, 2010
This should be a very busy and interesting week (couple of weeks) in Congress as both sides meet with President Obama tomorrow to hash through concerns including trying to resolve how both parties want to handle the George W. Bush expiring tax cuts of 2001 and 2003....
R&D Tax Credit – Extender Bill Update
The R&D credit expired as of 12/31/2009 and has yet to be extended by Congress although it has received attention as of late, including discussions by the President calling for a permanent R&D credit.
New 90/10 Test for Prior Period Compensation
The IRS has issued a new Tier I Industry Director Directive on Domestic Production Deduction (DPD) #3 Field Directive Relating to Compensation and the Section 199 Deduction.
New Research Credit Case: Trinity Industries
The latest in a series of recent research credit cases, the Northern District of Texas issued an opinion on relating to the research credit for developing certain types of ships by Trinity Marine Group.
New IRS Rules on Disclosure of Uncertain Tax Positions
IRS Commissioner Douglas Shulman announced that for certain corporations and other business taxpayers the IRS will start requiring that taxpayers disclose their uncertain tax positions.
New Research Credit Case: TG Missouri Decision Production Molds Qualified as Supplies
The U.S. Tax Court issued a decision November 12, 2009 that found TG Missouri (“TG”), an automotive parts manufacturer, properly included in research expenses, supply expenses related to production molds produced by a third party, in possession of TG, but sold to customers.
Find out if you qualify for valuable
Tax Credits and Incentives