IRS issues final regulations on electing alternative simplified credit

Tax Hot TopicsTax Hot Topics
The IRS on Feb. 27 issued final regulations under Section 41(c)(5) for electing the alternative simplified credit (ASC).

The final regulations (T.D. 9712) largely adopt proposed regulations (REG-133495-13) issued in June 2014, and reject a number of practitioner comments that sought modification of the proposed regulations. Notably, the regulations’ preamble states that the IRS and Treasury will not adopt a practitioner suggestion that late election relief be granted under Treas. Reg. Sec. 301.9100-3, or “9100 relief.” The final regulations also clarify that a taxpayer may make an ASC election for a tax year on an amended return “only if the taxpayer has not previously claimed the Section 41(a)(1) credit on its original return or an amended return for that tax year.”


Mark Andrus
+1 503 276 5910

Tax professional standards statement
This document supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document, we encourage you to contact us or an independent tax professional to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this document is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.