IRS and Treasury Issue New Accounting Methods Guidance for Specified R&E Expenditures.

Internal Revenue Service

IRS and Treasury Issue New Accounting Methods Guidance for Specified R&E Expenditures.

The Tax Cuts and Jobs Act’s amendments are described in detail in Revenue Procedure 2023-11.

On December 29, the Treasury Department and IRS released Revenue Procedure 2023-11, an update to the rules for changing the accounting method for specific research or experimental expenses.

The recently released guidance replaces and modifies the early December Revenue Procedure 2023-8. The Tax Cuts and Jobs Act (TCJA), passed in 2017, made changes to the tax code. Revenue Procedure 2023-11 describes how businesses should adhere to these changes.

The TCJA changes are generally applicable to certain research or experimental expenses paid or incurred in tax years beginning after December 31, 2021.

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