TAX ALERT: IRS may extend the transition period for compliance regarding research credit refund claims


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 transition period for compliance regarding research credit refund claims serves as a timely reminder for businesses to stay on top of their R&D tax credits – and how Engineered Tax Services (ETS) can help.
Here’s the latest:

  • An October 2021 IRS announcement provided that refund claims for section 41 research credits must include detailed information in five specific areas, with claims failing to meet these requirements deemed invalid. The IRS provided a one-year transition period during which examiners could correspond with taxpayers on the required information and give them 45 days to cure deficiencies. The agency is now considering extending this transition period.
  • The IRS is also considering changes to Form 6765 to improve the efficiency of research credit exams, with updated guidance expected to define the scope of the disclosures required and provide some standardization.

Good News for Small Businesses

If implemented, both of these developments signal good news for small businesses seeking to take advantage of potential R&D tax credits to realize tax savings, increase cash flow and stay competitive in the marketplace – provided they know where to look and what to look out for.

The experts at ETS can help you keep up with the these and other regulatory changes to ensure your claim has the maximum chance of acceptance by the IRS and other tax bodies.


Engineered Tax Services

Engineered Tax Services

Recent Posts

Establishing Your Accounting Firm On Social Media

Establishing your accounting firm’s voice on social media should be a top priority. If your firm doesn’t have a brand guide that includes its tone of voice, now is the perfect time to create one. It doesn’t have to be a full-blown brand guide⁠—just something that helps to establish and maintain a consistent brand voice.

Read More »
employee retention tax credit scams

How to avoid employee retention tax credit scams

A survey by the National Federation of Independent Business (NFIB) found that only 4% of small business owners are “very familiar” with the Employee Retention Tax Credit program. Furthermore, only 32% said they were “somewhat familiar” with the incentive. Scammers are taking advantage of this unfamiliarity to collect high fees from business owners. Unscrupulous companies

Read More »
accounting firms

Tips for Accounting Firms looking to get started on Social Media

Getting started on social media can be confusing and hard to understand. Especially for accounting firms that keep putting it off. Yet it truly is not as bad as it seems. Trust me. I manage over 20 social accounts, many of which I created from scratch. With the busy season behind us, now is the

Read More »

Contact Us