Metals Manufacturer Fights IRS Denial of Research Tax Credits

The IRS has incorrectly denied an Ohio metals manufacturer tax credits for its experimental work, the company says.

Ferroglobe USA Inc. petitioned the US Tax Court over a $4.67 million tax deficiency in its 2018 tax year—the IRS disallowed an IRC Section 41 tax credit for increasing research activities of about $1.5 million that year. The IRS’ Section 41 determination also caused the government to reduce the company’s general business credit reported on its Form 3800 by about $4.2 million, as well as some general business credits carried forward from the three prior years, Ferroglobe said in the petition.

Ferroglobe ...