5th Circuit Largely Affirms Tax Court Decision in Shami v. Commissioner – R&D Credit Case
In the underlying TC Memo case Shami v. Commissioner, an R&D tax credit case, the Tax Court found that there was not sufficient evidence to show that two higher level managers were engaged in research activities for which the R&D credit was claimed based on...
New R&D Tax Credit Regs – Intercompany Gross Receipts / Foreign Gross Receipts
The Internal Revenue Service (IRS) and Department of Treasury (Treasury) have proposed new regulations regarding the calculations of gross receipts in relation to intra-group transactions between members of a controlled group claiming the research and development...
New Section 174 R&D Regulations – R&D Expenditures
The IRS recently published new proposed regulations for research & development (R&D) costs under Section 174 that amend some of the rules around what costs qualify under Section 174 for an R&D deduction. In general, these amendments attempt to quell...
New Section 199 Domestic Production Activities Deduction Case – ADVO Tax Court Case Printer Publisher
In a new Section 199 Domestic Production Activities Deduction case, the Tax Court has ruled that a third party contract printer is entitled to the Section 199 deduction and not the publisher. ADVO, Inc. v. Commissioner, 141 T.C. 9 (2013). ADVO is a direct mail...
North Carolina R&D Credit Overview – Extended Through 2015
The Technology Development Tax Credit in North Carolina has been renamed the Research & Development (R&D) tax credit as of mid-2013 but the same rules apply and this credit is now extended through 2015. Taxpayers may claim eligible R&D expenses for the...
Wisconsin R&D Credit – Overview and Update
Wisconsin R&D Tax Credits The Wisconsin Research Tax Credits (R&D tax credits) provide an incentive to increase qualified research activities and facilities within the state of Wisconsin. The R&D credits are nonrefundable and can be used to offset...
Treasury Issues Final Regulations on Repairs and Maintenance
On September 13, 2013, the IRS and Treasury Department released the final regulations (T.D. 9636) on repairs and maintenance providing guidance for the treatment of expenditures incurred in acquiring, producing, or improving tangible assets (commonly known as the...
FedEx Prevails in R&D Credit Case – Discovery Test does not Apply
In a case that had been working its way through the system on R&D credit, Federal Express (Fedex) has settle their lawsuit with Department of Justice and retained most of its R&D credits per a stipulated settlement that will avoid trial. Most notably, the DOJ...
Taxpayer Gets a Gift (Basket) – New Section 199 Case – Domestic Production Deduction
In perhaps a surprising outcome, a district court has ruled that assembling gift baskets qualifies as manufacturing for purposes of the Section 199 Domestic Production Activities Deduction (or Section 199 deduction). The company produces gift baskets from purchasing...
Funded R&D – Taxpayer Wins Geosyntec Motion on R&D Credits
In another recent R&D tax credit case, upon motion, the U.S. District Court for the Southern District of Florida reviewed the important aspects of 'funded R&D' and determining which party obtains the R&D tax credit. The R&D credit is determined in part...
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