On June 2, 2014, the IRS released temporary regulations amending Sec. 1.41-9(b)(2) allowing taxpayers to utilize the Alternative Simplified Credit Method to compute the research tax credit on an amended return. This removes the restriction of using the Regular Method calculation on an amended return and eliminates the need to perform the often complex and risky base-period percentage calculation associated with the Regular Method calculation. These temporary regulations serve to make it easier and quicker for a taxpayer to calculate the research credit which may have been omitted on the originally-filed return and removes the base-period percentage calculation which is often the cause of disallowed research claims.
The Ins and Outs of the ERTC
The Employee Retention Tax Credit (ERTC) is a tax credit offered by the federal government to assist businesses in retaining their employees during economic hardships. This credit was introduced in 2020 as a response to the COVID-19 pandemic and has been extended until the last quarter of 2021.