2001 Proposed Regulations
REG–112991–01: Notice of Proposed Rulemaking and Public Hearing
Published in thttp://www.titanarmor.com/wp-admin/post-new.php?post_type=pagehe Federal Register on December 26, 2001 – REG–112991–01 .
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–112991–01]
RIN 1545–AY82
Credit for Increasing Research Activities
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking and notice of public hearing.
SUMMARY: This document contains proposed regulations relating to the computation of the research credit under section 41(c) and the definition of qualified research under section 41(d). In addition, this document contains proposed regulations describing when computer software that is developed by (or for the benefit of) a taxpayer primarily for the taxpayer’s internal use is excepted from the internal-use software exclusion contained in section 41(d)(4)(E). These proposed regulations reflect changes to section 41 made by the Tax Reform Act of 1986, the Revenue Reconciliation Act of 1989, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997, the Tax and Trade Relief Extension Act of 1998, and the Tax Relief Extension Act of 1999. This document also provides notice of a public hearing on these proposed regulations.
DATES: Written and electronic comments and requests to speak (with outlines of oral comments) at the public hearing scheduled for March 27, 2002 must be received no later than March 6, 2002.
ADDRESSES: Send submissions to: CC:IT&A:RU (REG–112991–01), room 5226, Internal Revenue Service, POB DC 20044. Submissions may also be hand delivered Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:IT&A:RU (REG–112991–01), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC. Alternatively, taxpayers may submit comments electronically via the Internet by selecting the ‘‘Tax Regs’’ option of the IRS Home Page, or by submitting comments directly to the IRS Internet site at: http://www.irs.gov/tax_regs/reglist.html. The public hearing will be held in the IRS Auditorium (7th Floor), Internal Revenue Building, 1111 Constitution Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Lisa J. Shuman, 202–622–3120; concerning submissions of comments and the hearing, LaNita VanDyke, 202–622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
Background
Explanation of Provisions
I. Research That Is Undertaken for the Purpose of Discovering Information Which Is Technological in Nature
II. Process of Experimentation
III. Internal Use Software
Internal-Use Software Defined
High Threshold of Innovation Test
Software Not Required To Satisfy the High Threshold of Innovation Test
Effective Date
IV. Shrinking-Back Rule
V. Other Exclusions
VI. Gross Receipts
VII. Recordkeeping for the Research Credit
Proposed Effective Dates
Special Analyses
Comments and Public Hearing
List of Subjects in 26 CFR Part 1
PROPOSED AMENDMENTS TO THE REGULATIONS
PART 1—INCOME TAXES
