The Internal Revenue Service will give taxpayers a little more time to “perfect” research and development (R&D) tax credit claims that fall short of new information requirements, according to a January 5 IRS update.
In October, the IRS had released guidance specifying new information that taxpayers would have to provide for R&D tax credit claims to be deemed valid, beginning after a grace period ending January 10, 2022.
For a one-year transition period following the grace period, the IRS stated that it would notify taxpayers if their filed claims were missing required information. The agency would then give the taxpayer an opportunity to “perfect” the claim before the IRS issues a final determination on it.
The previous guidance had stated taxpayers would have 30 days to perfect such R&D tax claims for which they receive notice of missing information. According to the update, the IRS is extending the time to perfect claims during the transition period to 45 days.
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