Audit Techniques Guide: Credit for increasing research activities (i.e. research tax credit) IRC Section 41* – Table of contents

Publication Date - June 2005

NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.

* Unless otherwise indicated, all section references are to the Internal Revenue Code of 1986, as amended, and the Treasury Regulations.

This Audit Techniques Guide (ATG) is presented in several chapters. These chapters can be accessed and then printed by following the links in the Table of Contents below. To print the entire ATG please refer the the PDF version.

Table of Contents

1. Introduction
2. Determining the Scope
   • Review Form 6765 - Credit for Increasing Research Activities
   • Research Credit Claims (Not on an Original Income Tax Return)
   • Prepackaged Submissions
   • Review the Taxpayer's Research Credit Computation Workpapers
   • Plan the Audit Strategy
3. Research Credit Computation
   • In General 
   • The Alternative Incremental Research Credit (AIRC)
   • Start-Up Companies 
   • Gross Receipts 
   • Special Rules 
     • Aggregation Rules of Section 41(f)
     • Short Years 
     • Acquisitions/Dispositions 
     • Partnership Issue 
4. Qualified Research Expenses (QREs) 
   • Wages
   • Supplies
   • Contract Research Expenses 
5. Qualified Research Activities
   • In General 
     • The Section 174 Test
     • The Discovering Technological Information Test 
     • The Business Component Test 
     • The Process of Experimentation Test 
   • Shrink Back 
   • Exclusions
6. The Consistency Requirement
7. Substantiation and Recordkeeping
8. Sampling Methodologies 
9. Reserved
10. Research Credit Issues
    • Coordinated Issues
    • Awareness Issues
    • Development and Presentation of Issues
11. Contact Information
    • TA Contact Information