IRS Renews Stance on Simplified Research Credit Post-Return

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IRS renews its stance that taxpayers cannot make or revoke an election for either the regular research credit or the alternative simplified research credit after they file their tax returns, spurring disappointment from practitioners interviewed by BNA. IRS's decision, which it announces in final rules (T.D. 9528), offers little help to taxpayers struggling with the complexities of calculating the credit, particularly those dealing with acquisitions and dispositions that can change a company's circumstances late in the tax year, stakeholders say. The rules finalize June 2008 temporary and proposed rules set to expire in a few days. The new guidance leaves in place a variety of other rules on the election and calculation of the alternative credit under Section 41.

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