Warner Robinson

Basim Shami Case – R&D Credit – Wages of Executives

wr-admin — Tue, 24 Apr 2012 12:27:42 +0000

In a recent TC Memo case, the Tax Court determined that certain higher level individuals within a cosmetics company did not materially participate in the R&D process (or at least did not prove they participated) to substantiate their R&D claim. …

R&D Credit Extension on Horizon?

wr-admin — Fri, 17 Feb 2012 15:20:46 +0000

The Senate Finance Committee is currently weighing whether to include any expired business tax credits in with the payroll tax, including the R&D tax credit. However a vote appears likely on the payroll tax cut on Friday with no inclusion …

Bayer’s Motion to Adopt Statistical Sampling in Research Credit Case Denied

wr-admin — Wed, 08 Feb 2012 17:03:03 +0000

In a ruling dated February 6, 2012, the District Court for the Western District of Pennsylvania has denied Bayer’s Amended Motion for a Case Management/Protective Order Based on Statistical Sampling in its R&D credit case. Bayer is one of the …

Section 199 – IRS Issues Guidance on Benefits and Burdens of Ownership

wr-admin — Fri, 03 Feb 2012 15:14:47 +0000

In a new Field Directive issued February 1, 2012, the IRS has provided examiners guidance on reviewing facts to determine which party to a transaction has the benefits and burdens of ownership in order to claim the Section 199 Domestic …

What is considered “Funded” Research under the Research Credit Provisions (Section 41)

wr-admin — Fri, 02 Dec 2011 20:11:20 +0000

If an activity is “Funded” the taxpayer does not have financial risk and cannot claim the research credit for the project’s costs. However, if the payment is contingent upon successful completion of the work, then the taxpayer/contractor is at risk …

New Appeals Guidance – Research Credit Redesignated

wr-admin — Sun, 13 Nov 2011 23:22:03 +0000

In an October 20, 2011 letter, the IRS has redesignated the research credit for purposes of Appeals settlements. Appeals cases involving the research credit still require informing the technical guidance coordinator for research credit and updating on progress of cases; …

North Dakota Research Expense Credit offers a chance to double your R&D Benefits

wr-admin — Sun, 13 Nov 2011 22:58:06 +0000

For taxpayers with qualified R&D expenses in North Dakota, the State offers an excellent R&D credit that can be double the Federal benefit in many cases. The North Dakota R&D credit (known as the North Dakota research expense credit) is …

State R&D Credit News – New Refundable Minnesota Research Credit

Bruce Warner — Wed, 21 Sep 2011 23:12:04 +0000

On April 1, 2010, Minnesota Governor Tim Pawlenty signed legislation expanding the research credit for qualified R&D activities in Minnesota. For tax years beginning after December 31, 2009, the Minnesota research tax credit provides the following benefits: The credit is …

California Changes Decision on Service Companies and R&D Credits

Bruce Warner — Fri, 12 Aug 2011 02:02:06 +0000

In an interesting turn of events, our blog entry below on limiting the California R&D credit to companies that can show sales of tangible personal property (Legal Division Guidance 2011-06-01), the Franchise Tax Board has withdrawn this guidance. This means …

Guidance from Treasury and the President on Effectiveness of the R&D Credit

Bruce Warner — Fri, 12 Aug 2011 02:00:29 +0000

The Office of Tax Policy, Department of Treasury issued a very informative summary this year outlining the President's approach to the research credit. In the attached document, the letter reviews proposals from President Obama's administration on making the federal R&D credit more effective in retaining and creating jobs in the U.S.