This powerpoint presentation was completed in partial satisfaction of course requirements for ACCT 8570(2) - Business Tax Strategies - at Kennesaw State University during the Summer 2009 May semester. This was a group tax research project. Information was obtained using RIA.

1. Jim Brignati
Kesha Haley
Patricia Sterling

2.  IRS eliminated discovery test
 Replaced with process of experimentation

3.  Researchis undertaken to eliminate
uncertainty.
 Research does not have to exceed, expand,
or refine common knowledge of a profession.
 Research does not require that the taxpayer
succeed.
A patent is conclusive evidence that the
taxpayer has discovered something
technological in nature.

4.  Musthave fundamentally relied on the
principles of physical or biological sciences,
engineering, or computer science.
 Theprocess of experimentation is designed
to evaluate one or more alternatives.
 Substantially all of the activities of which
constitute elements of a process of
experimentation related to a new or
improved function, performance, or
reliability or quality

5.  Concern about application of shrinking back
rule
 All expenses may not qualify.
 Finalregulations provide clarification that
the rule is not intended to exclude qualified
expenditures from credit, but rather is
intended to ensure that expenses
attributable to qualified research activities
are eligible to research credit for purposes of
Section 41.

6.  Taxpayers should carefully review research
activities that might otherwise fall within
certain exclusions to ensure that only eligible
activities are being included in their credit
computations.