Guidance on Safe Harbor Rev. Proc. 2020-51

On Wednesday, November 18, Revenue Procedure 2020-51 was released by the IRS. This revenue procedure details a safe harbor for certain taxpayers who have utilized PPP loans during this tax period. Since there are a few ways that this can play a factor come tax time, we’ve summarized the revenue procedure to provide some guidance going forward.   Background In October, we provided guidance on IRS Notice 2020-32 and its implications to the Paycheck Protection Program (PPP). Check out that post here. It will provide some context and catch you up to speed on the IRS stance when it comes to claiming expenses incurred or paid with PPP funds. It also details the types of expenses referenced going forward. The Purpose … Read More

Biotechnology and the R&D tax credit

There are many industries that qualify for the R&D tax credit as outlined in the Internal Revenue Code Section 41. One industry in particular is the biotechnology industry. There has been a lot of discussion pertaining to this industry this year and throughout this post, we will be breaking down how certain biotech projects and innovations qualify for the credit. The Four-Part Test Qualification for any industry begins with the Four-Part Test and the biotech industry is no different. This test outlines the criteria a potentially qualified activity must meet to be deemed as R&D. Qualified activities include:  Examples of Qualified Biotech Activities This year has shown us that technology can be very useful to the healthcare industry.  From telehealth … Read More