The IRS extended the transition period for taxpayers to perfect their refund claims for R&D Tax Credits through January 10, 2024. Taxpayers are now provided 45 days to perfect a research credit claim for a refund prior to the IRS’s final determination on the claim, according to the IRS.
The transition period was initially listed at 30 days and was set to expire on January 10, 2023.
An R&D tax credit provides businesses with a tax benefit for conducting qualified research activities. When submitting an R&D claim for refund, it’s essential to provide specific details and supporting information.
Information Required for Submitting an R&D Tax Credit Claim
According to the IRS, to claim a Section 41 R&D tax credit refund, taxpayers are required to provide the following information:
Taxpayers can submit their R&D tax credit claim by attaching IRS Form 6765 Credit for Increasing Research Activities to their amended return and a statement with the above information. The above information may sound like a lot, but with the proper assistance, it is very manageable.
Benefits of Claiming the R&D Tax Credit
Claiming the R&D tax credit provides numerous benefits, including:
Qualifications for Businesses to Claim the R&D Tax Credit
If your business paid for any of the below, it might qualify for the tax credit:
Get Help From The Experts
At Source Advisors, we can help determine the specific R&D tax credit rules that apply to your fact pattern and guide you through the filing requirements.
If you need assistance with a Research Credit refund claim or claiming the Credit on your current tax year return, please contact us.