The eco-conscious movement continues gaining momentum, and the IRS is lending a hand. With energy efficiency incentives like 45L and 25C tax credits, going green packs more financial punch than ever. Homeowners and builders have long faced confusion tapping into these credits’ full savings potential. Complex rules and unclear guidelines often left taxpayers scratching their
Article Sections Overview Impacted Programs Prevailing Wage Guidance Apprenticeship Guidance Recordkeeping Requirements Beginning of Construction Guidance Fast Facts Conclusion Resources Overview Introduced in the Inflation Reduction Act (IRA) of 2022, prevailing wage and apprenticeship provisions in certain tax incentives will allow taxpayers to receive increased benefit if they abide by labor guidelines. Prevailing wage
Future changes to the way companies can take deductions from research and development expenses may make investing in innovation more difficult, particularly for small businesses and startups. Furthermore, these new regulations may have a negative impact on U.S. national security. Business owners should have long-term strategy in mind when determining how to properly classify expenses.
IRS Update *** The IRS is extending for another year (through January 10, 2024) the transition period during which taxpayers are provided 45 days to perfect a research credit claim for refund prior to IRS’s final determination on the claim. A recent comment by an IRS official indicating that the agency may extend the … Read more
Does Bill Gates use TurboTax? We don’t think so. While automated online platform tax return submission might be a convenient solution for many people, they are often incapable of capturing the complexity of a given person’s detailed financial picture—especially if there are a lot of moving parts. But an Accounting Today story by editor Dan
Usually, the IRS demands we file our federal income taxes on April 15, but this year, Tax Day is Monday, April 18. Why? Because the IRS’ District of Columbia offices will be closed on Friday, April 15, to observe Washington D.C.’s Emancipation Day holiday, which commemorates the 1862 act that abolished slavery in the city. This year, it technically
If your filing an amended return for R&D tax credits, time is running out. On October 15, the IRS, via IRS Memo: IR-2021-203, gave taxpayers only a three-month warning (extending to January 10, 2022) that if they intend to file retroactively to capture R&D tax credits on an amended return for prior years, they must
There’s been a disturbing change in precedent as practiced by the IRS: IRS audits of research and development (R&D) tax credit claims by service providers, such as architecture and engineering (AE) companies, have become inconsistent over the last couple of years. In fact, IRS audit actions appear to be reversing the long-standing precedent for the type of
Architects often ask if they will face resistance from the IRS if they claim R&D tax credits and get audited, but they can improve their chances by following these guidelines and tips. IRS Hurdles List Read the IRS guidelines, know the four-part test, and understand how to define phases in project accounting. According to the
For years now, the architectural, engineering, and construction community has been receiving the research and development tax credits it deserves for fostering innovation in its creation of America’s vital infrastructure.[1] But recently the architectural, engineering, and construction community has begun seeing an increase in unfair denials of these credits by the Internal Revenue Services, breaking