What is the definition of experimental research?
The definition of experimental research, for the purpose of qualifying for the R&D Tax Credit, can be found in Internal Revenue Code (IRC) section 41(d)(1).
The definition of gross receipts is codified in IRC section 41(c)(7).
The current definition of contemporaneous documentation is discussed in Section V of Treasury Decision 8930 (T.D. 8930).
If you want to better understand how these definitions are applied, use Titan Armor’s R&D Credit Legal Database, in the sidebar on the right. In this database, the current law as it relates to the federal Research Tax Credit is continuously updated. The database is organized as follows:
1.0 Legislation – what’s happening with the policy makers in D.C.
2.0 Regulations – the Treasury Department’s interpretation of the policy makers’ intentions.
3.0 Statute – the final regulations codified in the IRC.
4.0 Case Law – the Courts’ clarification of the statutes, regulations and legislative intentions.
5.0 Audits – the IRS’ current focus on evaluating R&D Credit claims from taxpayers.
6.0 Commentary – thoughts and ideas to help you better understand the R&D Credit body of law.
