A Tax Return Do-Over for the R&D Credit
The IRS does not have a reputation for being magnanimous or for allowing you to correct mistakes easily. But when it comes to forgetting the federal R&D tax credit, do-overs do exist.
If the deadline (including extensions) has not yet passed when you discover the missing credit, you can file what’s called a superseding return. This essentially undoes the filing of your original return, allowing you to include the necessary documentation for the R&D credit.
If the deadline has already passed, filing an amended return is your only option. Although an amended return solves a forgotten R&D credit in many cases, it does not help companies that had hoped to offset payroll taxes. When amending, the R&D credit can only be used to offset income taxes.
Moral of the story? Aim to complete your R&D study before the tax deadline and submit form 6765 alongside your company’s original filing. If you’re nearing the tax deadline and unsure of your eligibility, consider extending so you don’t miss the credit entirely or limit your ability to monetize it.
To find out more, schedule a free consultation with Clarus R+D. Our technology-driven solution simplifies R&D studies, maximizes your benefit, and reduces overall fees.