R&D Tax Credit News

On June 2^nd the IRS issued temporary regulations (T.D. 9666) allowing for the election of the Alternative Simplified calculation method on an amended return.  The temporary regulations were also simultaneously issued as the final proposed regulations.

Now taxpayers will not be forced to use the Traditional calculation methodology when going back to open tax years to recoup R&E tax credits.  As long as no research credit was taken in the tax year being amended, the Alternative Simplified will be available.  The regulations do not allow a taxpayer to amend a claim calculated using Traditional Calculation methodology and elect the Alternative Simplified.