The Attached Statement Requirements for R&D Tax Credit Claims

  • By Devin Medrek
    • 01 Dec, 2022
    • read
  • Twitter
  • Linkedin
The Attached Statement Requirements for R&D Tax Credit Claims


Effective January 10th, 2022, through the IRS’ Information Release 2021-203 and Chief Counsel Memorandum 20214101F, documentation requirements to claim the R&D credit became a bit more tedious. These requirements are only necessary on amended returns for refunds because of claiming the credit in tax years already filed. That is, for companies filing their returns tax year 2023 and onward, claiming the R&D credit on the initially-filed return, these requirements do not need to be met.  

The New Rules

The guidance now requires that all R&D tax credit claims include the following documentation in an attached statement, filed with the amended tax return(s): 

  • Identify all the business components (i.e. R&D ‘projects’ per IRC 41) pertaining to the research credit claim for the applicable tax year being amended. 
  • For each business component, identify all research activities performed and name the individuals who performed each research activity, as well as the information that each individual sought to discover  

    ● Individuals contributing qualified research expenses (QREs) claimed by the company filing for the credit include employees and 1099 contractors, if applicable.   

Impact to Your R&D Claim

The only tangible impact to your company’s process during an R&D credit study with Leyton is committing an hour or two more of time in total. During this time our consultants will ensure these new requirements are met. This new requirement is not a big change for us. It has always been part of our process to provide similar documentation with this level of detail. 

Examples of questions needing answers are as follows

  • Specifically which business components or projects did each employee work on?  
  • The employee contributed towards R&D on which of the following levels: Supervisory, direct hands-on, or support level capacity? 
  • What is each employee’s job title? 
  • What were the actual R&D activities that each employee was taking part in? What sort of experimentation, what sort of information – knowingly or unknowingly – was each employee working to discover on behalf of the R&D taking place? 

These sorts of questions are what defines R&D. They are also what our consultants already ask for the purposes of ensuring your company’s projects do qualify as R&D. The only change is a higher level of per-employee details. These details defining the actual day-to-day activities of employees that helped facilitate the R&D. With the information provided through a conversation, Leyton drafts the attached statement as thoroughly as possible. We do the leg work!  

Our highly qualified team of tax and technical experts are up to date on the latest legislation.


Devin Medrek author photo
Devin Medrek

Financial Team Lead

Explore our latest insights

See more arrow_forward

Demystifying the new Section 174 Amortization Costs

Read more to understand the Impact on the Research & Development Tax Credit Under Section 41 ...

Missouri Final State to Create New Laws Under Wayfair

Missouri Becomes Final State to Create New Laws Under Wayfair

Missouri became the final state to create a law regulating economic nexus under the parameters e...

Navigating the SALT Complexities of the Construction Industry

The construction industry presents a unique set of challenges when it comes to state and local ta...

Do all US States Conform to Federal Tax Law?

Do all US States Conform to Federal Tax Law?

Conducting business in multiple states businesses need to be familiar with the different rules an...