Highlights of the Research Credit Interested Parties Meeting
On October 11, 2012, we held an Interested Parties Meeting to open dialogue with practitioners and taxpayers on issues related to the California research credit. The meeting goal was to solicit input from our stakeholders and obtain suggestions to improve the research and development credit administration and audit examinations.
The meeting focused on four key areas:
1. What legislative proposals should be considered for California?
2. What is the best way to understand the taxpayer's business?
3. How can we expedite the audit process while ensuring the documentation and substantiation is sufficient to determine the proper qualified activities and expenses?
4. What are some solutions to overcome base-year documentation issues?
Several participants submitted their issues in writing, while others raised their issues in an open forum.
We took careful note of the issues raised and the many observations and suggestions to ease compliance and enhance the audit process. After evaluation and discussion with our staff, we will determine what changes to our approach of the issues can be pursued.For more information, go to ftb.ca.gov and search business tax credit.