The IRS aims to review Research Credit refund claims as quickly as possible and make determinations on such claims within six months of receipt. This timeline is an attempt to expedite the review process and provide timely responses to taxpayers.
The processing of these claims involves a thorough review to ensure that all required information is provided and that the claim meets the necessary legal and procedural standards. Specifically, the IRS requires that the claim includes detailed information about the business components, research activities, individuals involved, and the expenses related to the research credit. This information must be provided in a written statement, verified under penalties of perjury, and must be sufficiently detailed to allow the IRS to understand the exact basis of the claim.
If a claim is found to be deficient, the IRS will notify the taxpayer through Letter 6426C or 6428, indicating which of the required items are missing and providing 45 days to perfect the filing. This process ensures that taxpayers have the opportunity to correct any deficiencies and provide the necessary information for the IRS to process the claim.
For taxpayers under examination, the field examiner, in coordination with subject matter experts and Division Counsel, will review the claim for the required information. For those not under examination, Campus employees will perform this review.
Overall, the six-month timeframe is a goal set by the IRS to ensure efficient processing and resolution of Research Credit refund claims.
Sources:
IRM Part 21. Customer Account Services. Chapter 5. Account Resolution. Section 3. General Claims Procedures
IRM Part 21. Customer Account Services. Chapter 4. Refund Inquiries. Section 1. Refund Research
IRM Part 21. Customer Account Services. Chapter 4. Refund Inquiries. Section 2. Refund Trace and Limited Payability
FAA 20214101F
