Articles
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New 9/8/23 IRS Guidance on 174: Some Silver Linings
-By Rick Kleban, Jenna Tugaoen, and James Bean
September 16, 2023
The new rules proposed by the IRS on Section 174 have caused great confusion and concern among Small Business Innovation Research (SBIR) companies. Specifically, SBIR businesses are faced with having to amortize its 174 expenses (Research & Experimentation). The silver lining is that the IRS changed the rules for Section 174 to such an extent that many will have amortization amounts that is 80% to 90% less than expected.
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Deciphering the IRS’s Two Tax Code Sections for R&D Expenses
-By Rick Kleban and James Bean
Published in Bloomberg Tax, June 21, 2023.
Understanding Section 174 and Section 41 of the tax code can help reduce compliance risks and avoid exposing clients to penalties during an audit, says Rick Kleban and James Bean of Sycamore Growth Group.
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Changing Research Tax Break Rules Will Harm Fewer Than Predicted
-By Rick Kleban, Daniel Reinier, and James Bean
Published in Bloomberg Tax, September 19, 2022
Changes to Internal Revenue Code Section 174 that took effect early this year have raised concerns, but most companies shouldn’t see a major upheaval to their tax picture, say Sycamore Growth Group’s Rick Kleban, Dainel Reinier, and James Bean.
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The Full Accounting of 174 R&D Amortization Costs
-By Rick Kleban and James Bean
Changes to Section 174, which were implemented due to the passage of the TCJA, took effect in 2022 and are new to even veteran CPAs. Because Section 174 was never intended to determine a taxpayer’s tax return, the proper accounting methods are not well understood, and as a result, overstated, says Rick Kleban and James Bean of Sycamore Growth Group.