Learn about the opportunity to file an amended return to claim credits for the previous 3 tax years
9/15 & 10/15 have come and gone, and whether you were unaware that your business qualified for the R&D credit at the time of your filing, or you simply could not gather the required financial data and project documentation timely, a credit was not claimed on the original tax return. Don’t despair; your opportunity to claim your credit (via an amended return) has not been lost.
And what many CPAs and businesses are unaware of is that pursuant to 2014 regulations taxpayers may now utilize the Alternative Simplified Credit (ASC) when filing an amended return. (Say goodbye to the burden of the 1984 to 1988 base period.)
Generally, you have at least 3 years from the date you file your tax return (or from the statutory due date if the return is filed early) to amend your return to correct any errors or include any missing items. Additionally, this 3 year period of time can be further extended if you incur net operating losses, make subsequent tax payments, or voluntarily extend the time to assess deficiencies.
The IRS has provided formal procedures to be used in filing an amended return. In addition, specific procedures must be followed for some amended returns claiming refunds relating to R&D Credits. Ultimately, if your amended return refund claim is approved and granted by the IRS, you will receive a refund check including any applicable interest on the overpayment.
A summary of these procedures are listed below:
- Complete IRS form 1120X, 1065X, or 1040X, based on the business entity structure;
- Include an explanation of the change and associated forms and schedules (e.g. Form 3800 and Form 6765;
- If the claim form is an 1120X, the claim for credit or refund shall indicate at the top “Refund-Research Credit”;
- Mail the claim to the designated address for amended return filings, except 1120X’s, which must be filed at the following address:
Internal Revenue Service Center
1973 North Rulon White Road
Ogden, UT 84201
