IRS Eases Rules Around Amended Return R&D Credit Claims

by: Brad Pittman
Verified by: CPA

June 20, 2024

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The IRS announced on Tuesday, June 18th, via an update to its FAQs for amended return research credit claims (see link below) that for claims postmarked on or after June 18th it is waiving the requirement that taxpayers provide the following information in connection with such amended return R&D credit claims:

  1. The names of the individuals who performed research activities, and
  2. The information each individual sought to discover.

The guidance outlined in FAQ 21 (Amended return R&D credit claim FAQs) comes in response to complaints from taxpayers in recent years around what are generally viewed as onerous documentation requirements. While no longer required to be submitted with an amended credit refund claim, the information should still be prepared and on file for submission during the course of a potential examination around the claim.

The remaining pieces of information originally required to be reported for amended R&D credit claims via Chief Counsel Memorandum 20214101F remain in force and are as follows:

  1. Identify all the business components to which the Section 41 research credit claim relates for that year.
  2. For each business component, identify all research activities performed and
  3. Provide the total qualified employee wage expenses, total qualified supply expenses, and total qualified contract research expenses for the claim year. This may be done using Form 6765, Credit for Increasing Research Activities.

Smith + Howard is available to support with a range of research & development tax credit services. To learn more, contact Brad Pittman at [email protected].

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