Reg. § 1.41-1 Credit for increasing research activities
(a) Amount of credit. The amount of a taxpayer’s credit is determined under section 41(a). For taxable years beginning after June 30, 1996, and at the election of the taxpayer, the portion of the credit determined under section 41(a)(1) may be calculated using the alternative incremental credit set forth in section 41(c)(4). For taxable years ending after December 31, 2006, and at the election of the taxpayer, the portion of the credit determined under section 41(a)(1) may be calculated using either the alternative incremental credit set forth in section 41(c)(4), or the alternative simplified credit set forth in section 41(c)(5).
(b) Introduction to regulations under section 41.
(1) Sections 1.41-2 through 1.41-8 and 1.41-3A through 1.41-5A address only certain provisions of section 41. The following table identifies the provisions of section 41 that are addressed, and lists each provision with the section of the regulations in which it is covered.
| Section of the regulation | Section of the Internal Revenue Code |
|---|---|
| § 1.41-2 | 41(b). |
| § 1.41-3 | 41(c). |
| § 1.41-4 | 41(d). |
| § 1.41-5 | 41(e). |
| § 1.41-6 | 41(f). |
| § 1.41-7 | 41(f). 41(g). |
| § 1.41-8 | 41(c). |
| § 1.41-3A | 41(c) (taxable years beginning before January 1, 1990). |
| § 1.41-4A | 41(d) (taxable years beginning before January 1, 1986). |
| § 1.41-5A | 41(e) (taxable years beginning before January 1, 1987). |
(2) Section 1.41-3A also addresses the special rule in section 221(d)(2) of the Economic Recovery Tax Act of 1981 relating to taxable years overlapping the effective dates of section 41. Section 41 was formerly designated as sections 30 and 44F. Sections 1.41-0 through 1.41-8 and 1.41-0A through 1.41-5A refer to these sections as section 41 for conformity purposes. Whether section 41, former section 30, or former section 44F applies to a particular expenditure depends upon when the expenditure was paid or incurred.
Defending Your R&E Tax Credits
We help clients defend their research tax credits. This includes helping with IRS and state audits, appeals and litigation for research tax credits.
We have defended hundreds of research tax credits.
If you have taken a research tax credit and the IRS is auditing your return, we want to hear from you.
Call us at (713) 909-4906 or schedule an appointment to discuss your research tax credit case.
R&D Tax Credit Articles
- Website Development Tax Deductions & the Start-Up Rules
There are several tax laws that have to be considered to determine when and how costs to develop websites are deductible. These expenses are almost always deductible. These tax laws raise timing questions. It’s a matter of when the expenses… Continue reading Website Development Tax Deductions & the Start-Up Rules - Enough is Enough, But An Amended Tax Return is Not
The process for reporting taxes can be more difficult than discerning whether a tax provision applies. This complexity stems from the level of information is required to be reported. The IRS reporting requirements continue increase every year. The IRS’s decision… Continue reading Enough is Enough, But An Amended Tax Return is Not - Research Tax Credit Records Must Be Kept for 40+ Years
A frequent question is how long one has to keep records for tax purposes. The United States v. Quebe, No. 3:15-cv-294 (S.D. Ohio 2019) case provides the answer for research tax credits. The answer is that you have to keep… Continue reading Research Tax Credit Records Must Be Kept for 40+ Years
More articles about the research tax credit.
In 40 minutes, we'll teach you how to survive an IRS audit.
We'll explain how the IRS conducts audits and how to manage and close the audit.