IRS Research Credit Proposal Roils Taxpayers Even After Tweaks

New reporting requirements for research and development tax credits proposed through an IRS form change still threaten to squeeze mid- to large-sized businesses, even after the agency tried to ease off in response to taxpayer feedback.

The IRS issued the revised draft form in June, exempting smaller businesses from proposed reporting requirements. In a change from revisions proposed last fall, it also cut the amount of information taxpayers would have to report when claiming the credit to no more than 80% of research credit claims or no more than 50 business units.

Despite these agency concessions, many taxpayers haven’t ...