Contact UsWhat are the probabilities of the Research & Experimentation Tax Credit being renewed retroactively to cover January 1, 2014 to present? I need to know this for tax accrual purposes.
ASC 740 Tax Provision
Federal Tax Compliance
FIN48
Legislative Analysis
Research Tax Credits
Tax Accruals
Tax Professional Answers
The probabilities are fairly high that the Federal-Level Research and Experimentation Tax Credit (hereinafter "RTC") will be retroactively renewed.
It should be duly recalled that the 1st Quarter 2014 Bipartisan Legislation on Capitol Hill has been overwhelmingly positive on both sides of the aisles to retroactively reinstate the RTC since it expired on December 31, 2013.
I would strongly encourage you to read the January 14th Bipartisan Legislation as introduced by U.S. Senator Chris Coons (D-Del.) and Senator Pat Roberts (R-Kan.) along with the President's Fiscal Year 2015 Budget Proposal dated March 4th.
As a caveat, taxpayers should not be booking any benefits on neither their tax returns nor their financial statements (e.g., Deferred Tax Assets / Deferred Tax Liabilities on their Balance Sheets per ASC 740 / FIN 48) for any benefits resulting after December 31, 2013 until the RTC has been officially retroactively reinstated through an approved bill and signed into law by the President.