We are not aware of any Treasury regulations related to IRS Section 174 trumping IRS Section 162 published to date, although the fearmongering surrounding this topic is deafening. In fact, we believe that most for-profit R&D companies will not need to amortize their expenses, other than IR&D.
In May, we participated in a 60-minute SBTC webinar focused on Section 174 and Section 162. During this highly informative and nuanced webinar, top subject matter experts discussed both sections from the perspective of existing Supreme Court cases and IRS Chief Counsel memoranda.
Watch the SBTC Section 174 and 162 webinar
Because we believe the insights found in this webinar are critically important to our clients and all SBIR/STTR recipients, we are sharing the hour-long discussion in its entirety.
View the full SBTC Webinar to understand the power of Section 162, then discuss this information with your CPA.
For a broader overview of Section 174 and 162, read our earlier blog here.
Ed Jameson, CPA, Managing Member
With over 40 years of experience as a government funding award accounting specialist, Ed is a recognized national expert in the field. In addition to helping hundreds of clients navigate FAR Part 31 compliance. he has been an active speaker and panel moderator at Tech Connect's National SRIR/STTR conferences since 2011. presents at the DOD's Mentor Protégé Summit and presents regularly for several state and local organizations.