Despite recent guidance from the IRS regarding Section 174 amortization, businesses remain unsure about the impact of Section 174 and for good reason. Many are wondering whether they should accept government contracts or not for fear that it will be [...]

In recent months, the IRS has announced several measures it is taking to protect businesses from scams tied to the Employee Retention Credit (ERC). In September, the agency announced a moratorium on processing new ERC claims through the end of [...]

The recent release of Notice 2023-63 has sent ripples across the corporate sector. Issued on Friday, September 8, 2023, it provides much-needed clarity on a slew of questions, especially those centered around Section 174 pertaining to research and experimental expenditures. [...]

The IRS’s Office of Fraud Enforcement has recently informed those who prepare the Employee Retention Credit (ERC) of the potentially fraudulent activity they have witnessed on the filed amended tax returns.  This fraudulent activity included fictitious businesses, identity theft, and [...]

An encouraging development has emerged in the world of Research Tax Credits as H.R. 5056, Fostering Innovation and Research to Strengthen Tomorrow Act was recently introduced in the House Ways and Means committee signaling potential changes to Research Tax Credits. [...]

Under the 2017 Tax Cuts and Jobs Act, there was an important tax law change related to Sec. 174 Research Expenses that will impact the 2022 Tax Return for companies performing R&D activities. Effective for tax years beginning after December [...]

The Government Accountability Office (GAO) released a report on May 17 identifying ways the IRS can strengthen its compliance plan in response to tax relief benefits (paid sick and family leave credits, Employee Retention Credit (ERC) and payroll tax deferrals) [...]

There is often confusion about whether government or commercial contracts can qualify as expenses for purposes of the R&D Credit. The simple answer is if a contract puts a company at financial risk – meaning payments are contingent upon success [...]

The IRS updated its research tax credit FAQs (Frequently Asked Questions) on Feb. 8, 2022, pertaining to additional requirements for research tax credit refund claims. The three updates (FAQs 13, 14 and 15) provided by the IRS shed guidance on [...]

The Employee Retention Credit (ERC) was instituted in 2020 to make it easier for employers to keep their employees, despite all the challenges presented by COVID-19. The ERC can be a significant reward for qualified businesses. For those that are [...]