R&D Tax Talk – Refund Claims

R&D Tax Talk

In this episode of Weaver: Beyond the Numbers, R&D Tax Talk, Ryan Coleman sits down with Nancy Imholte and Monique Pham to discuss the latest IRS updates on refund claims related to the R&D tax credit. They explore how recent changes to the documentation process affect taxpayers filing amended returns or refund claims. With the IRS adjusting its requirements, the team emphasizes the importance of thorough documentation, even with some relaxed criteria, and how these changes impact the tax filing landscape.

The discussion highlights how businesses can prepare for refund claims under the new rules and expectations as the changes occur.

Key Points:

• Recent IRS changes reduce the burden of documentation for R&D refund claims but still require comprehensive details on business components.
• Taxpayers must continue to maintain complete records in case of future audits or examinations.
• The new guidance becomes effective for claims filed after June 18, 2024, with previous stricter rules still applying to earlier claims.

Coleman, Imholte and Pham review the IRS’ recent guidance on refund claims for the R&D tax credit, specifically the changes affecting the submission process. While the IRS has reduced some of the documentation requirements — such as not needing to list individual names or detailed objectives —   businesses are still expected to provide substantial details related to their research activities.

“Even though the IRS has relaxed some of the documentation rules, businesses still need to maintain detailed records to stay compliant in case of an audit,” Imholte said. The team discusses how these changes will apply to filings after June 18, 2024, and the need for businesses to keep robust records for potential audits.

Even with the easing of the claim submission process, it’s crucial for businesses involved in R&D activities to maintain comprehensive documentation and a user-friendly organization of records to ensure a seamless claim process.

Subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.

©2024