Brief excerpt from a YouTube video discussing the contentious IRS environment around the R&D tax credit. The speaker notes IRS awareness of aggressive claims, the agency’s use of tools (chief counsel memoranda, technical advice, court cases) to challenge claims, and the practical importance of the three-year statute of limitations for returns.
I can say for certain that the IRS environment is very, very contentious around the R and D credit. They are aware that there's a lot of people who are taking aggressive positions, and they are using different techniques to combat some of these aggressive positions. So they have, like, chief counsel memorandums or technical advice, or they have court cases that come out that give the IRS some tools to sort of combat. So there's a three year statute of limitations. That's how long the IRS can look at your return before that return can't be amended or looked looked at again. And some people are banking on that three year statute lapsing, and there would be no exam. So the credit is solidified in that return. So if you are to be examined, the IRS has, like I said, a lot of tools in their bag to discredit your claim.
