Case: Recovery of Improper Refund from Research Credit Allowed (M.D. La.) (IRC §41)

IRS can recover erroneous refund paid on improper refund from a research credit where a construction company did not conduct any qualified research activities during the tax year, a district court held, granting the IRS’s motion for summary judgment. Taxpayers own construction company (S), operated as an S corporation, that provides services in various markets, including oil and gas; chemical processing; power and utilities; infrastructure; communications; and water quality. S’s consultant suggested that S is eligible for I.R.C. §41 research credits for past years so S filed an amended return claiming $1.3 million in such credits. Taxpayers failed to ...