On Friday, September 30th, the IRS announced that the transition period during which taxpayers are provided 45 days to cure a R&D tax credit claim for refund under Sec. 41 of the Code prior to the IRS’s final determination on the claim has been extended through January 10th of 2024.
Taxpayers are still required to provide Form 6765 with all of the following data at the time of the filing of the amended tax returns including:
The IRS will be better able to determine upfront whether to pay the refund immediately or further review the claim. In the event the IRS determined there is missing information, a taxpayer will have 45 days to cure the claim with a possible resubmittal before the IRS makes their final determination. If a claim is accepted, there will still be three open statute years for the IRS to conduct a full audit and possible disallowance at a later time. To that end, it is critical to ensure compliance with all the rules and regulations under Sec. 41 of the Code have been satisfied to avoid paid preparer penalties.
Veritax Advisors Insights: Taxpayers considering filing a R&D tax credit claim for refund should contact us today to determine if your fact pattern aligns with the scope of the federal program requirements to capture this valuable tax credit.