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R&D activities credit help

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    R&D activities credit help


    A C corp client has been developing a proprietary software for which the R&D research activities credit has been taken on Form 6765 since 2016. I thought the project was complete and the product ready for market, but I was wrong. No credit was taken on his 2022 return. There are eligible expenses for the credit. The eligible expense is contract labor paid to the person developing the software. Here are my questions.

    1) Is there a time limit for any one particular project? I haven't come across an expiration. What I have read is the project is on-going until the product is ready to market.
    Does anyone have contrary or other information?

    2) An amended return has to be completed since the credit wasn't claimed on the original return. Is there any alternative, such as claiming it next year? The only expense item is contract labor as mentioned above.

    Thanks in advance to anyone who chimes in.

    I see lots of views but no chirps. Anyone familiar with form 6765? Maybe we can connect for a private paying consultation.


      The few times I've prepared an 1120S including an R&D credit, all the inputs I needed were supplied by another firm specializing in same, so I exercised good faith reliance on information that appeared reasonable and complete. This was also a software development company, as in your question. I think asking for private contact, as you have, makes sense. You are not likely to get reliable, detailed R&D credit technical help in an anonymous internet tax forum.
      "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard


        Thanks RR. I appreciate your reply. Am now registered for a CPE to help educate me.