IRS Will No Longer Challenge R&D Credits Claimed on Clinical Trials Stages 1 and 2, if…
December 19, 2012
By Michael Hadjiloucas
The Internal Revenue Service has issued guidance on December 7th (LB&I – 04-1212-014) to its examiners that would provide more flexibility in allowing the research and development tax credit for taxpayers working to develop new drugs, in a development viewed as taxpayer-favorable by the industry and accounting firms.
Examiners should not challenge the amount of certain qualified research expenses (QREs) taken by taxpayers for developing new pharmaceutical drugs and therapeutic biologies if those expenses occur during Stage 1 and Stage 2 of a specific four-stage development process and taxpayers provide signed certifications of their research.