As a result of the COVID-19 pandemic, many businesses are facing financial challenges including declining revenue and rising operating costs. In addition, the 2017 Tax Cuts and Jobs Act (TCJA) amended the tax treatment of research and development (R&D) expenditures under Internal Revenue Code Section 174. Effective for tax years beginning after Dec. 31, 2021, taxpayers are required to capitalize and amortize Section 174 costs over five years for domestic expenses and 15 years for foreign expenses.
How…
