Instructions: Based on the information provided, complete the calculations below.
	Regular Method	2023
	Wages
	Supplies
	Contract Research
	Qualified Research Expenses (QRE) Total
	Average Annual Gross Receipts
	Fixed Base Percentage			assume first five years, use 3%
	Computed Fixed Base Amount
	50% of QRE
	Greater of 50% of QRE or Base Amount
	Incremental QRE
	R&D Tax Credit @ 20%
	Reduced Credit (Section 280C)			79%
	Alternative Simplified Credit Method	2023
	Wages
	Supplies
	Contract Research
	Qualified Research Expenses (QRE) Total
	First Prior Year QRE (Tax Year 2022)
	Second Prior Year QRE (Tax Year 2021)
	Third Prior Year QRE (Tax Year 2020)
	Average of 3 Prior Years' QRE
	50% of Average 3 Prior Years' QRE
	Current Year QRE - 50% of Average 3 Prior Years
	ASC (Fed Credit Rate = 14%)
	Reduced Credit (Section 280C)			79%
	Summarize the total 174 expenses from the detail:
	US*
	Section 174 Wages
	Section 174 Supplies
	Section 174 Contractors
	TOTAL	$ -
	*Assume no Foreign
	What is the year 1-6 amortization expense for these costs (5 year amortization, for year 1, there is a half year convention, meaning half of the annual amortization is taken)?
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5
	Year 6
	Total
	What two points did the IRS clarify in Notice 2024-12 with respect to contract researchers?
	Per the Revenue Procedure 2024-9, will there still be audit protection for Section 174 expenses that were ignored in 2022?

Answer rating: 100% (QA)

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