IRS releases guidance to facilitate administration of research credit ‘safe harbor’

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May 2018

Overview

The IRS on May 14 released two pieces of guidance to field teams to facilitate administration of the 'safe harbor' for qualified research expenditures (QREs) under the Section 41 research tax credit that are based on an adjusted amount of ASC 730 research and development (R&D) costs. The safe harbor was provided under a Directive released by the Large Business & International Division (LB&I-04-0917-005) on September 11, 2017. (For detailed analysis of the 2017 Directive, see PwC Insight, IRS introduces research credit Directive for taxpayers that report R&D costs on audited financial statements, September 21, 2017.)

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Brett Ritter

Brett Ritter

Partner, National R&D Tax Services Leader, PwC US

Randel Friedman

Randel Friedman

Partner, PwC US

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