The IRS updated its research tax credit FAQs (Frequently Asked Questions) on Feb. 8, 2022, pertaining to additional requirements for research tax credit refund claims.
The three updates (FAQs 13, 14 and 15) provided by the IRS shed guidance on how to comply with the refund claim requirements for research credits for pass-through entities, how to comply with the requirements for taxpayers who e-file amended returns involving research tax credits and guidance for appealing a research credit claim if it is determined to be deficient or not valid.
Back in October, 2021, the IRS announced that in beginning in early 2022 there would be additional requirements for taxpayers wanting to claim refunds for research tax credit claims. In early January, interim guidance was provided to assist taxpayers in complying with the new requirements and the IRS will likely continue to update its FAQ page as tax season continues.
Hull & Knarr will continue to monitor the additional guidance from the IRS on complying with these new requirements.