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A piece of the 2017 tax law that went into effect this year is leaving small, research-intensive businesses with IRS bills they can’t pay, according to The Wall Street Journal.
The law requires companies to spread tax deductions for research costs over five years instead of taking them immediately. This means business owners in research-intensive industries have lost the ability to deduct the bulk of their expenses on the 2022 tax returns they are about to file.
For a large business, the change is a cash flow challenge that can be easily handled, but it is a much bigger hurdle for small businesses.
The 2022 start date has been on the books for years, but many business owners and accountants assumed Congress would change the law before it took effect. Read the full story.
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