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What You Need to Know about New IRC 174 Capx Compliance Requirements

WHAT YOU NEED TO KNOW ABOUT NEW IRC 174 CAPX COMPLIANCE REQUIREMENTS

Cost Free
Presentation Length 1.0 hour

Recorded DateFebruary 16, 2023
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaTaxes
Course LevelBasic
Course Description

The 2017 Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, made fundamental prospective changes to the federal income tax treatment of research and experimental (R&E) expenditures under Internal Revenue Code Section 174. United States taxpayers must capitalize and amortize R&E expenditures, including software development expenses, over 5 years (15 years for foreign R&E). In light of the new mandatory capitalization regime for R&E expenditures, the following course agenda will help taxpayers be prepared.

Course Agenda:


  • Background on 174 and TCJA 

  • Section 174 Research and Experimentation (R&E) Defined 

  • Section 174 R&E versus Section 41 Research Credit versus GAAP Capitalization 

  • Example 174 R&E Calculation 

  • IRS Method Change Guidance 

  • Legislative Outlook


Learning Objectives:


  • Identify specified R&E activities and related expenditures, including indirect costs

  • Determine when to implement or update systems for tracking R&E expenditures

  • Evaluate fluctuations in estimated taxes

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PLEASE NOTE: ARCHIVED WEBINARS DO NOT QUALIFY FOR CPE
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Matt Neuenswander is a Manager at Tanner LLC and has over seven years of experience in public accounting. He started his career with EY providing tax services to technology, pharmaceuticals, biotech, aerospace, and real estate companies. His experience at EY includes R&D and orphan drug tax credits, accounting methods, cost segregation, tax compliance, and ASC 740 audits. Before joining Tanner, Matt spent two years at CGI, a global IT consulting firm. He managed U.S. tax credits and incentives programs, including R&D tax credits, federal and state audits, job credits, state development grants, domestic manufacturing deduction, and fringe benefit analysis. Matt received his bachelor’s and master's in accounting at Brigham Young University. He is licensed as a CPA in Utah and a member of the American Institute of Certified Public Accountants and the Utah Association of Certified Public Accountants.

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Shawn Marchant

Tanner LLC
Tax Principal
smarchant@tannerco.com
(801) 532-7444

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Shawn Marchant is a tax principal at Tanner LLC. For more than 20 years, he has been advising clients regarding federal and state tax credits and incentives, primarily in the area of research credits. His experience ranges from initial scoping through project implementation and delivery, project management, IRS and state audit support, and evaluation of benefits for financial statement presentation. Shawn spent 16 years with the Big Four, most recently with Ernst & Young in the southeast region. He began his career in Deloitte’s national R&D tax credit group and spent two years in its accounting methods and periods national practice group in Washington, DC.

A frequent speaker on the R&D credit, Shawn is an attorney licensed in California. He received a JD from BYU J. Reuben Clark Law School and an LLM (Tax) from Georgetown University Law School.

About Our Presenter

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At Tanner, their purpose is to serve. Each day, they make a positive impact in the lives of all those with whom they interact. They dazzle clients by being on time and on budget with no surprises.