Recent court cases that may impact your r&d methodology
FedEx Corporation v. United States, No. 08-2423 (2009)
Internal-use software can be qualified
Union Carbide v. Commissioner, T.C. Memo (2009)
Process-related r&d is qualified
Trinity Industries, Inc. v U.S., U.S. District Court, N.D. Texas, 2010-1 U.S.T.C. 50,219 (2010)
One-off’s can be qualified
TG Missouri Corporation v Commissioner 133 T.C. No 13, (2009)
Tooling can be qualified
U.S. v Arthur R McFerrin; Dorothy F McFerrin, No. 08-20377 (2009)
Include “trial and error”
Direct supervision of r&d activity qualified
Shami v Commissioner (T.C. Memo 2012-78)
Executives may be included (and Cohan rule used) if they play role in r&d
Bayer Corp. v. United States (No. 2:09-cv-00351) 2012
Limits use of sampling for identification of qualified business components
Suder v. IRS – T.C. Memo 2014-201 (2014)
Senior mgt may be included
Wage allocations may be estimated by knowledgeable & credible persons (reinforced Cohan rule)