By Keiter CPAs
Managing Partner highlights need for research credit reform for manufacturers
Gary Wallace, Managing Partner, discusses the challenges surrounding research and development (R&D) tax credits for manufacturers in his article, “Research Credit Reform for Manufacturers Needed Now,” featured in Industry Today®.
Article Excerpt
“Regulatory Hurdles”
“The fact is that the changes made to Form 6765 are beyond burdensome. Many manufacturers have had to build entirely new documentation programs and procedures at a tremendous cost. The weight of having to devote so many manhours and increased investments to reporting is not a good use of time or money for the manufacturing industry. At a time when the American manufacturing industry is facing increased global pressure, they need to be able to devote more resources to their core business.”
Article Highlights
- Manufacturers must now provide 658 new pieces of information on Form 6765 to claim the research credit, significantly increasing compliance requirements
- The IRS continues to rely on the 2012 Union Carbide case to deny certain manufacturing research activities, despite the Chevron doctrine being overturned in 2024
- Conflicting guidance from IRS exam teams has left some manufacturers facing vague or unanswerable requirements, increasing uncertainty and administrative strain
Looking for guidance on R&D tax credit compliance and strategy for your manufacturing business? Contact your Keiter Opportunity Advisor or Email | Call 804.747.0000
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Keiter CPAs
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More Insights from Keiter CPAsThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
