Simply Tax® Episode 148: Mandatory Capitalization of R&D
For tax years beginning after December 31, 2021, the legislation informally known as the Tax Cuts and Jobs Act eliminated the option to deduct research and development (R&D) expenditures, which include software development costs. Host Damien Martin sits down with guest Mike Boenzi, the national leader of FORVIS’ R&D tax credit services, to break down the new mandatory treatment and help you prepare for the immediate and long-term potential impacts of this change. Here’s what they cover:
- Who is Mike Boenzi? @00:53
- What is IRC Sec. 174 and how did it change effective January 1, 2022? @05:00
- How might this change impact taxpayers? @07:06
- Are there practical tips for documentation? @15:44
- What is the history of the R&D tax credit and who should consider it? @21:05
- What’s the significance of recent developments in IRS examinations and guidance? @34:53
- What are takeaways and action items? @43:21
CONTACT INFORMATION FOR OUR GUEST
Michael Boenzi is the national leader of FORVIS’ R&D tax credit services and recognized senior R&D credit professional. Mike leads an industry-based, multidisciplinary R&D credit team that provides a wide range of services. These services include opportunity identification, initial and multiyear R&D credit analyses, annual R&D credit reviews, §174 studies, orphan drug credit studies, data analysis, documentation analysis and preparation, ASC 730 and ASC 740 assessments, IRS and state examination support, and administrative appeals support.
He has helped both private and public clients across a wide range of industries—from start-ups and middle-market firms to Russell 1000 and Fortune 500 companies. He has also helped clients take advantage of a suite of federal tax credits and incentives related to innovation, employment activities, real estate and capital investment, and energy efficiency and sustainability.
Mike is FORVIS’ national technical leader for R&D tax credit issues. In this role, he provides technical consultation to engagement teams and oversees the technical review of all engagements. Mike also represents the firm on IRS national initiatives related to the credit and is involved in every examination with R&D credit issues.
He has been working with R&D credits for more than 20 years. Prior to joining FORVIS, he spent several years in the R&D credit and Global Credits and Incentives practice of an international firm.
ADDITIONAL RESOURCES
- Archived webinar: Preparing for the Required Capitalization of Research & Development Costs: A Practical Perspective (August 31, 2022)
- Articles:
- The R&D Tax Credit: Lowering the Cost of Innovation for Food & Agriculture Businesses (August 16, 2022)
- Missouri to Reinstate the Research & Development Tax Credit (June 17, 2022)
- All Taxpayers Must Revisit Tax Treatment of Research and Experimental Expentitures (June 13, 2022)
- Mandatory Capitalization of R&E Costs - Are you Ready? (February 22, 2022)
- Simply Tax:
- Simply Tax Talks | February 1, 2022 | A Big R&D Change (February 1, 2022)
- Episode 44: The R&D Tax Credit (September 26, 2018)
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