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R&E Tax Credit: ASC Method Now Allowed on Amended Returns

June 3, 2014 The IRS has amended the tax code to no longer prevent taxpayers from using the alternative simplified credit (ASC) method on amended tax returns if the taxpayer has not claimed the research and experimentation (R&E) tax credit on its original tax return. This rule change can mean significant savings for those taxpayers who have not been claiming the credit in the past, but are entitled to it. Using the ASC method simplifies things for the taxpayer by allowing utilization of data from recent years, which is more readily available than the previous requirement. Previously, taxpayers filing amended returns to claim the R&E tax credit were required to gather data from the period of 1984 – 1988. MPB has been assisting taxpayers in the region to take advantage of the R&E tax credit since 2003. We have a trained and dedicated staff able to handle the R&E tax credit issues and calculations necessary to save valuable tax dollars. Contact us today to discuss the R&E tax credit and how it may be applicable to your company.