The IRS has issued a revenue procedure providing updated guidelines for accounting method changes for specified Code Sec. 174 research or experimental expenditures. (Rev Proc 2023-11, 2023-3 IRB; IR 2022-235, 12/29/2022)
The new guidance modifies and supersedes Rev Proc 2023-8, issued earlier this month. The IRS says that Rev Proc 2023-11 is designed to encourage timely compliance with changes made by the 2017 Tax Cuts and Jobs Act.
In general, the TCJA changes apply for specified research or experimental expenditures paid or incurred in tax years beginning after December 31, 2021.
For more information accounting method changes, see Checkpoint’s Federal Tax Coordinator ¶G-2100 et seq. For more information treatment of research and development expenses, see Checkpoint’s Federal Tax Coordinator ¶L-3100.
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