Industry News
Trump's One Big Beautiful Bill Just Changed the R&D Tax Credit—Here's What You Need To Know
Tucked within the "One Big Beautiful Bill Act" (Section 70302) is a massive boon for U.S. corporations. While it’s not a full reinstatement of the old way of expensing R&D, the OBBBA dramatically improves the playing field.
An Update on Kyocera and What It Means For You
Last summer, we wrote a post called “The Kyocera Section 41 Case Should be a Wake-Up Call” about the precariousness of relying exclusively on interviews to deliver the necessary proof to the IRS on an R&D filing. With the Kyocera case back in the news, it’s clearly time for an update.
The Kyocera Section 41 Case Should be a Wake-Up Call
The IRS has been emphasizing the necessity of contemporaneous documentation for decades, but this recent motion for summary judgment against Kyocera could mark a potential shift towards a stricter application of their long-standing policy. The direction seems clear—reliance on after-the-fact interviews without supporting documents is increasingly untenable.
The House Approves Bi-Partisan Bill to Revive R&D Tax Credit and the Child Tax Credit
The Tax Relief for American Families and Workers Act of 2024 passed in the House by a vote of 357 to 70 on Wednesday. The bill will help restore much of the Covid-Era Child Tax Credit and will rewrite part of the Trump-Era change to R&D Taxes that had made domestic R&D costs prohibitively expensive for innovative American companies. Whether the Senate approves the bill remains up in the air.
Companies Can Now Claim $500K in R&D Payroll Credits, New IRS Guidance Says
Starting with the 2023 tax year, a qualified small business may elect to claim up to $500,000 of its credit for increasing research activities as a payroll tax credit. Previously, taxpayers could only claim up to $250,000.
When is the Extension Tax Deadline for S-Corps?
For any S-Corp — defined by the IRS as “corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes” — the extension tax deadline is September 15, 2023. So, now is the time to get your books in order and to file your R&D tax credit.
An Update on Section 174 for Tax Extenders
The CFOs and Controllers of every innovative company in America have been watching Congress with baited breath all year. Grant Thornton just shared an important update on Section 174, R&D Capitalization, the debate in Congress, and what it means for you!
The Software R&D Capitalization Paradigm is Changing in 2023
The tax code is changing, for better or for worse. You need trustworthy data to understand engineering costs and determine what should be capitalized/amortized. New solutions can ensure automated, trustworthy data and make recommendations to ensure tax optimization and compliance. Jellyfish and Neo.Tax are here to answer your questions about ALL of this.
R&D Capitalization Has Arrived (For Now)—Here's What You Need To Know
You didn’t found your company because you always dreamed of navigating a constantly shifting tax landscape—but that doesn’t mean you get to ignore it. So, here’s an R&D Capitalization cheatsheet from your tax wonk friends at Neo.Tax.… So, uh, what do Amortization and Capitalization Mean? Fair question! Capitalization can be...
R&D preparation may become a necessity
By Stephen Yarbrough, Polk Advisors 5 min read As the legislative session gets later into the year, time is running out for Congress to reverse course on the capitalization of R&D that will go into effect in 2023… and just when you thought you were getting ahead on your...
Indiana Lawmaker Spearheads R&D Tax Credit Increase
Indiana Lawmaker Spearheads R&D Tax Credit Increase By Neo.Tax Team 2 minute read With backing from the National Association of Manufacturers, GOP Representative Jackie Walorski of Indiana put forward an amendment to the tax code that could mean serious increases in research and development tax credits for businesses. ...
AICPA & CIMA Engage22 Recap
And just like that, AICPA & CIMA Engage22 is over… Luckily, this time around what happened in Vegas isn’t staying in Vegas. We’re giving you a quick recap of what you need to know from the week’s festivities. Engage22 delivers once again Amongst a sea of interesting discussion panels and...
Status on R&D Capitalization Rules
Status on R&D Capitalization Rules - Keeping it brief. What? Potential changes to the R&D Capitalization rules When? Wednesday, March 9, 2022 What should I know? The 2700+ page omnibus bill just dropped in Congress last night, March 8, and must be voted on before Friday, March 11...
Key 2022 Filing Dates to be Aware of
Don’t miss out on tax refunds because you missed a deadline. Did you know that if your accountant files your 2021 tax return, with your prepared R&D tax Credit, by the March 31, 2022 cut off date you could see a 6% drop in your total payroll cost starting April...
IRS Gives New Guidance on R&D Tax Credit
IRS Gives New Guidance on R&D Tax Credit Last September, in an effort to keep companies from retroactively claiming questionable expenses under the IRS R&D Tax Credit, the IRS Office of Chief Counsel issued a memo with new requirements for backing up claims. The new guidance required a much...