2005 R&D Tax Credit May Be Lost - Filing Deadlines Approaching

 

If a company wants to capture their credit for 2005, they can file an amended return 3 years from the date they filed their returns for 2005.  Once that date is passed; you have lost the credit forever.

 

So if a company filed an extension in 2005, they may still have to time conduct a study and amend their 2005 returns.

 

In addition, those companies that want to use the credit for 2008 and have filed an extension, it is beneficial to include the credits in the original return and not file an amended return.  In our experience, there is a smaller chance of being audited if the credit is taken on an original return than an amended return.