A win for taxpayers!

TG Missouri case redefines Supplies

A long standing definition of supply costs was redefined in favor of taxpayers as a result of TG Missouri v. Commissioner. The IRS has held that supply costs taken as part of qualified research expenses for purposes of the R&D tax credit can not be "of a character subject to the allowance for depreciation."While this definition is defined in the IRS Regulations, the court ruled that the character of the supply costs needs to be evaluated in the hands of the taxpayer rather than in an absolute fashion. For a more complete discussion dowload our white paper summary of TG Missouri v Commissioner.