Tax News

CCH (cch.taxgroup.com) reports:

  Proposed regulations have been issued regarding the election for claiming the reduced research credit under Code Sec. 280C(c)(3). The regulations are proposed to apply to tax years ending on or after the date of publication of the Treasury decision adopting these rules as final regulation in the Federal Register.

Procedure

  The proposed regulations would change the procedure for making the election for the reduced research credit under Code Sec. 280C(c)(3)(C). Instead of requiring the election to be made "on an original return," the proposed regulations specify that the election is made on Form 6765, "Credit for Increasing Research Activities," which should be attached to the return.

Controlled Groups

  The proposed regulations also address comments received by the IRS and Treasury Department regarding members of controlled groups. The proposal provides that each member of a controlled group may make the election under Code Sec. 280C(c)(3) after the group credit is computed and allocated under Reg. §§1.41-6(b)(1) and 1.41-6(c) and
Temporary Reg. §§1.41-6T(b)(1) and
1.41-6T(c)(2).

Comments & Hearing

  Written or electronic comments must be received by October 14, 2009. Outlines of topics to be discussed at the public hearing, scheduled for November 4, 2009, at 10:00 a.m. EST, must be received by October 16, 2009.

Proposed Regulations, NPRM REG-130200-08, 2009FED ¶49,423

Other References:

 
Code Sec. 280C

  CCH Reference - 2009FED ¶14,953C

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 54,150