IRS Guidance for R&D Credit

IRS Guidance for R&D Credit

On September 11, 2017 the IRS issued the “Guidance for Allowance of the Credit for Increasing Research Activities under I.R.C. §41 for Taxpayers that Expense Research and Development Costs on their Financial Statements pursuant to ASC 730”. The link to the directive is found on the IRS website.

The directive contains the examination process the IRS will use for the Research and Development Credit claimed by Large Business & International (LB&I) taxpayers. For an LB&I taxpayer filing a Minnesota business return meeting the federal requirements listed within the directive, the Minnesota Department of Revenue will follow the IRS guidelines and allow the use of GAAP expenditures for the Minnesota Research and Development Credit calculation.

Visit our website for more information regarding Minnesota’s requirements for the directive.