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A short tax year, lasting less than 12 months, can occur due to business start/end, accounting changes, or IRS requirements. For R&D credits, this short period requires pro-rating expenses and adjusting base amounts. Kipsi’s platform simplifies these calculations, ensuring accurate credit claims.

The CAMT, introduced by the Inflation Reduction Act, enforces a 15% minimum tax on corporations with over $1 billion in income. It targets adjusted financial statement income (AFSI) and includes specific rules for foreign entities and multi-entity corporations.

In March 2024, the Michigan Senate passed significant legislation aimed at expanding the state's Research and Development (R&D) Tax Credit. This new legislation marks a major shift from the previous program, which offered only a 1.9% credit on qualifying expenses, to a much more generous system. Now, Michigan businesses can receive up to a 15%...

Q4 is the best time to adopt new technology for R&D due to end-of-year budget opportunities, strategic planning for the new year, less operational pressure, and the chance to gain a competitive edge. Firms can take advantage of vendor discounts and promotions, while also using the slower project period to train their teams.

Lawmakers are pushing to restore immediate R&D expense deductions, reversed by the 2017 tax reform. Bipartisan bills aim to boost U.S. competitiveness by reinstating full deductions by 2025, with strong support from industry leaders and policymakers.

The IRS has extended the deadline to May 1, 2025, for individuals and businesses impacted by Hurricane Helene to file federal tax returns and make payments. Affected areas include Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia.

In a significant move aimed at fostering innovation, the IRS has simplified the documentation requirements for research credit refund claims under Section 41. This credit encourages businesses across various industries to invest in research and development (R&D) by offering tax incentives for qualified research expenses. As of June 18, 2024, the...

Since its introduction, the Employee Retention Credit (ERC) has been a source of significant frustration for both the IRS and employers. Initially designed to provide financial relief to businesses during the COVID-19 pandemic, the ERC has been plagued by administrative delays, a surge in dubious claims, and a complex application process. These...

As summer sets in, states are rolling out policy changes from their legislative sessions. While most state tax changes typically take effect on January 1 to align with the tax year, some significant changes are slated for July 1, the start of the fiscal year for most states (except Alabama, Michigan, New York, and Texas).

The IRS has taken significant steps to reduce the burden on taxpayers claiming the Credit for Increasing Research Activities, commonly known as the Research Credit, by releasing a revised draft of Form 6765 on June 21, 2024. This update follows the initial draft released in Septembe...