Rules and Regulations. Correcting amendment
419 words·~2 min read·
/register/2016/11/03/2016-26522A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 7535-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9786] RIN 1545-BC70 Credit for Increasing Research Activities; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. SUMMARY: This document contains corrections to final regulations (TD 9786) that were published in the **Federal Register** on Tuesday, October 4, 2016 (81 FR 68299). The final regulations provided guidance regarding the application of the credit for increasing research activities.
DATES: This correction is effective November 3, 2016 and is applicable on or after October 4, 2016. FOR FURTHER INFORMATION CONTACT: Martha Garcia or Jennifer Records of the Office of Associate Chief Counsel (Passthroughs and Special Industries) at
(202)317-6853 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The final regulations (TD 9786) that are the subject of this correction are under section 41 of the Internal Revenue Code. Need for Correction As published, the final regulations (TD 9786) contain errors that may prove to be misleading and are in need of clarification. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: PART 1—INCOME TAXES **Paragraph 1.** The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * **Par. 2.** Section 1.41-4(c)(6)(viii) is amended by: a. Revising the fifth sentence of *Example 14* paragraph (ii). b. Revising the fifth sentence of *Example 17* paragraph (i). The revisions read as follows: § 1.41-4 Qualified research for expenditures paid or incurred in taxable years ending on or after December 31, 2003.
(c)* * *
(6)* * *
(viii)* * * Example 14. * * *
(ii)* * * If X's research activities related to the development or improvement of Subset B constitute qualified research under section 41(d), without regard to section 41(d)(4)(E), and the allocable expenditures are qualified research expenditures under section 41(b), X may include $6,250 (25% × $25,000) of the software research expenditures of Subset B in computing the amount of X's credit, pursuant to paragraph (c)(6)(vi)(C) of this section. Example 17. * * *
(i)* * * The ability to use the idle employees' computers would save X significant costs because X would not have to buy new hardware to expand the computing power. * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2016-26522 Filed 10-31-16; 4:15 pm]
Connectionstraces to 1
Traces to 1 document
U.S. Code
2 references not yet in our index
- 26 CFR 1
- T.D. 9786
Citation graph
cites case law
Cites 3Cited by 0 across 0 sources