According to the “smart money” the research credit will likely be extended again by Congress, retroactive to the beginning of the year.
Strategy: File an amended return claiming the credit for an open tax year. Generally, you have three years from the tax return due date of the year the expenses were incurred.
What’s more, under new temporary and proposed regulations just issued by the IRS, you can opt for a simplified version of the credit if you didn’t previously elect to take the basic credit. In the past, taxpayers may have bypassed the basic credit due to the complexity of the rules or inadequate records.
Here’s the whole story: The basic research credit, which was initially introduced on a temporary basis back in the 80s, has been extended 15 times since its inception. The credit is generally equal to 20% of the excess of qualified research expenses for the year over a base amount. The base amount is a fixed-base perce...(register to read more)