In Bayer Corporation et al. (U.S. District Court, Western Dist. of Pennsylvania) the Court held that the company could not use a sampling method to substantiate expenses qualifying for the research credit. The Court noted that Reg. Sec. 1.41-4 requires that a taxpayer must retain records in sufficiently usable form and detail to substantiate that the expenditures claimed are eligible for the credit.

If you have any questions about this topic, tax law changes, business tips, or how to become a client, please call us at 954-591-8290 or use our Contact form.