The $3.26M Lesson: What the Little Sandy Coal Decision Means for R&D Tax Credits
The $3.26M Lesson: What the Little Sandy Coal Decision Means for R&D Tax Credits The federal ruling in Little Sandy Coal Company v. Commissioner is now one of the clearest indicators of how the IRS evaluates R&D tax credit claims. The case denied more than $3.26 million in credits for a shipbuilder that designed and […]
Why Contract-Based R&D Credit Claims Are Being Rejected Before the Work Is Reviewed
Why Contract-Based R&D Credit Claims Are Being Rejected Before the Work Is Reviewed Many engineering, architecture, and design firms still assume that technically complex contract work can qualify for the R&D tax credit. The assumption feels reasonable. If the work is customized, difficult, and performed by engineers, it should count. Recent court decisions make clear […]
What the Populous Holdings Case Means for R&D Tax Credits Under Client Contracts
What the Populous Holdings Case Means for R&D Tax Credits Under Client Contracts The Tax Court’s decision in Populous Holdings, Inc. v. Commissioner is one of the most important rulings on how contract research is evaluated under the R&D tax credit rules. In this case, the court rejected the IRS position that the taxpayer’s research […]
What the Suder v. Commissioner Decision Means for R&D Tax Credit Claims
What the Suder v. Commissioner Decision Means for R&D Tax Credit Claims The Tax Court decision in Suder v. Commissioner is one of the clearer examples of how a well-documented R&D tax credit claim can withstand IRS scrutiny. In this case, the court upheld most of the taxpayer’s claimed research projects, allowed a substantial portion […]
How TaxDrone.ai Protects You From “Betz-Style” R&D Credit Disallowances
How TaxDrone.ai Protects You From “Betz-Style” R&D Credit Disallowances The Tax Court case Betz v. Commissioner is a reminder that simply believing your work is “technical” isn’t enough to qualify for the R&D tax credit. In this case, Betz claimed credits for projects he thought counted as research. But when the IRS challenged the claim, […]
How TaxDrone.AI Protects You From “Trinity-Style” R&D Credit Denials
How TaxDrone.AI Protects You From “Trinity-Style” R&D Credit Denials The case Trinity Industries, Inc. v. United States shows how even large, sophisticated companies can lose out on the R&D tax credit if their claims don’t line up with IRS standards. Trinity, a major industrial manufacturer, claimed millions in R&D credits for engineering and design work. […]
How TaxDrone.AI Protects You From “Moore-Style” R&D Credit Denials
How TaxDrone.AI Protects You From “Moore-Style” R&D Credit Denials The Tax Court case Moore v. Commissioner is another example of how companies can lose valuable R&D credits—not because they weren’t innovative, but because they couldn’t prove it in the way the IRS requires. The Moores claimed credits for their business activities, but the IRS and […]
How TaxDrone.AI Protects You From “Intermountain-Style” R&D Credit Denials
How TaxDrone.AI Protects You From “Intermountain-Style” R&D Credit Denials The federal case Intermountain Electronics, Inc. v. United States shows how even innovative companies can lose the R&D tax credit if their claims aren’t properly structured and documented. Intermountain built custom electrical equipment for clients and claimed R&D tax credits on that work. The IRS challenged, […]
How the Siemer Milling Case Broke Down and What It Teaches Us About R&D Tax Credit Compliance
How the Siemer Milling Case Broke Down and What It Teaches Us About R&D Tax Credit Compliance In the world of R&D tax credits, one thing is clear. Good intentions are not enough. The IRS needs proof. That reality became obvious in the 2019 Siemer Milling Co. v. Commissioner case, where more than 235,000 dollars […]