About the Course
Introduction
This CLE/CPE webinar will guide tax professionals and advisers on navigating IRS scrutiny and challenges to the R&D tax credit for small and large businesses and international taxpayers. The panel will discuss the recent IRS crackdown on documentation of research credit claims, managing IRS audits, qualified research activities (QRAs) and qualified research expenses (QREs), safe harbor for certain taxpayers, and techniques to assist in documenting and claiming R&D credits.
Description
For many businesses, the R&D tax credit is one of the most significant tax benefits. When claiming the R&D credit, determining what constitutes a QRA and calculating QREs can be challenging.
The IRS has strict standards in examining R&D tax credit claims and has announced changes in documentation requirements for claims made concerning the credit for increasing research activities. In addition, the IRS recently issued procedural guidance now requiring taxpayers to submit specific pieces of information with any amended returns or administrative adjustment requests that claim an R&D credit.
Generally, Sec. 41 allows a credit for a percentage of a QRE that a taxpayer incurs engaging in research activities. The Code provides a four-part test to determine whether an activity can be considered a QRA. Expenditures, including wage expenses with sufficient nexus to the QRA, can be included in calculating the expenditure base. However, substantiating that an activity qualifies as a QRA can still be complex, and tax professionals must know the standards and limits in utilizing this important and overlooked credit.
Listen as our experienced panel discusses the recent IRS crackdown on documentation of research credit claims, managing IRS audits, QRAs and QREs, safe harbor for certain taxpayers, and techniques to assist in documenting and claiming R&D credits.
Presented By
Mr. Horwitz has over 35 years of experience as a tax attorney specializing in the representation of clients in civil and criminal tax cases, including civil audits and appeals, tax collection matters, criminal investigations, administrative hearings and in civil and criminal trials and appeals in federal and state courts. He has served as a member of the Executive Committee of the Taxation Section of the State Bar of California and was Chair of the Taxation Section for 2015-2016 year. Mr. Horwitz was previously Chair of the Tax Procedure and Litigation Committee of the State Bar Taxation Section. Prior to joining Hochman Salkin Toscher Perez P.C., Mr. Horwitz was with a boutique tax controversy firm in Orange County, where he represented clients in civil and criminal tax cases in the U.S. Courts of Appeal, U.S. district courts, California superior courts, and before the Internal Revenue Service, the California Franchise Tax Board, the Board of Equalization, the Employment Development Department and the Unemployment Insurance Appeals Board. He has been a speaker on tax matters at the UCLA Tax Controversy Institute, the Annual Meeting of the Taxation Section of the California Bar and the California State Bar Annual Meeting.
Mr. Perez has extensive experience in the representation of clients in civil and criminal tax litigation and in tax disputes and controversies before the Internal Revenue Service and all the California taxing agencies. He was formerly a senior trial attorney with District Counsel, Internal Revenue Service, in Los Angeles, California. Mr. Perez is a Certified Tax Specialist, California State Bar Board of Certification and is also a Fellow of the American College of Tax Counsel. He frequently lectures on advanced civil and criminal tax topics at seminars and before national, state and local bar associations and accountancy groups. He is a co-author of the BNA Portfolio, Tax Crimes, has served as the Chair of the Los Angeles Lawyer Magazine Editorial Board and is the first recipient of the Los Angeles Lawyer Sam Lipsman Service Award for outstanding service to the Los Angeles Lawyer Magazine. He is past Chair of the Tax Procedure and Litigation Committees of the Taxation Sections of the State Bar of California and the Los Angeles County Bar Association. Mr. Perez is past President of the Alumni Board for the UCLA School of Law and has served as an Adjunct Professor, Golden Gate University, Graduate School of Taxation.
Mr. Stigile specializes in tax controversies as well as tax, business, and international tax. His representation includes Federal and state tax controversy matters and tax litigation, including sensitive tax-related examinations and investigations for individuals, business enterprises, partnerships, limited liability companies, and corporations. Mr. Stigile's practice also includes complex civil tax examinations, administrative appeals and tax collection proceedings (where he is widely respected for achieving meaningful resolutions of difficult tax collection issues). He frequently writes and lectures on topics involving taxation.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, December 16, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Recent IRS guidance for the R&D tax credit
- Determining QRAs
- IRS regulations on QRA calculations
- Sampling and allocation methods for QREs
- Documentation and substantiation of credit claim
- Applying for credits against AMT or payroll tax liability
The panel will discuss these and other important topics:
- Recent IRS guidance for claiming the R&D tax credit
- The four-part test to determine whether an activity can be considered a QRA for purposes of claiming a Section 41 R&D credit
- Documentation and substantiation requirements
- Sampling strategies for including wage QREs and other indirect costs in the credit calculation
- Best practices for businesses claiming a Section 41 R&D credit
