Monthly Archives January 2011

R&D Tax Credit – Discovery test invalidated

Important R&D tax case back in June 9, 2009, 5th Circuit of Appeals in Texas Southern District ruled in US vs McFerrin.  The Mcferrins co-founded KMCO Inc a manufacturer of chemicals. The engaged an R&D tax credit firm to perform a study for them.  IRS challenged the credit and the district court ruled in the government’s favor that the taxpayer failed to engage in the controversial discovery of information test showing some threshold of innovation
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