Pharma and Life Sciences Tax News Vol. 12 No. 2:

January 2013
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Pharma and Life Sciences Tax News Vol. 12 No. 2:

At a glance

IRS Large Business and International (LB&I) Commission issued a directive not to challenge qualified research expenditures (QREs) claimed by taxpayers in the pharmaceutical sector during Stage 1 (discovery and preclinical stage) or Stage 2 (clinical trial stage) of the pharmaceutical development process if the taxpayer provides a Certification Statement regarding those QREs.

Certifications under LB&I Directive for 'core research' due February 5 for QREs 'under examination'

On December 7, 2012, IRS Large Business and International (LB&I) Commissioner Heather Maloy issued a Directive to all LB&I employees not to challenge the amount of qualified research expenditures (QREs) claimed by taxpayers in the pharmaceutical sector that arise during Stage 1 (discovery and preclinical stage), or Stage 2 (clinical trial stage) of the four-stage pharmaceutical development process, provided the taxpayer provides a Certification Statement regarding those QREs.

For companies with QREs 'under examination' on December 7, Certification Statement(s) is/are due February 5.