Alternative Simplified Credit Method Now An Option for Amended Returns
On June 2nd the IRS issued temporary regulations (T.D. 9666) allowing for the election of the Alternative Simplified Credit calculation method on an amended return. The temporary regulations were also simultaneously issued as the final proposed regulations.
Now taxpayers will not be forced to use the Traditional calculation methodology when going back to open tax years to recoup R&E tax credits. As long as no research credit was taken in the tax year being amended, the Alternative Simplified Credit will be available. The regulations do not allow a taxpayer to amend a claim calculated using Traditional Calculation methodology and elect the Alternative Simplified Credit.
Written by: Bradley Miles