Discussion:Question about an 1120X....QTDP

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Basic Tax Questions --> Question about an 1120X....QTDP


Discussion Forum Index --> Tax Questions --> Question about an 1120X....QTDP

Neil Mink (talk|edits) said:

31 January 2011
I have a new client. It is a biotech company that applied for and received money from the Qualified Therapeutic Discovery Project program. They have brought me a letter from the IRS that says they need to amend their 2009 tax return (1120) to disallow the related research expenses. This will create a large tax liability for the client because taxable income would be increased by the disallowed expenses. Would they have to pay penalties and interest on the additional tax due? The letter says that the grant is not taxable for Federal purposes but if we have to amend the return it will create additional tax. I am obviously completely missing the board.

Kevinh5 (talk|edits) said:

31 January 2011
Discussion:Amending for QTDP grant?....

Neil Mink (talk|edits) said:

31 January 2011
kevinh5, for some reason that did not show up when I searched. Regardless, no one answered that guy's question either.

Kevinh5 (talk|edits) said:

31 January 2011
I know, I'm only linking them in case one of you finds an answer. I know nothing of the subject myself, you may indeed be the expert.

Neil Mink (talk|edits) said:

31 January 2011
LOL--kevinh5--that is a scary thought. Thanks.

Nightsnorkeler (talk|edits) said:

31 January 2011
I'm sure you've already read the following:

Qualifying Therapeutic Discovery Projects Basic Information: Questions and Answers

And the related Notice:

Notice 2010-45

By the way, there is an IRS email address at the bottom of the FAQ page to submit questions that are not address on the FAQ page.

To join in on this discussion, you must first log in.
Personal tools