IRS Updates Research, Experimental Expense Accounting Guidance

Treasury, IRS provide updated guidance on accounting methods for specified research or experimental expenditures

Dec. 29, 2022

WASHINGTON — The Treasury Department and Internal Revenue Service today issued Revenue Procedure 2023 -11 providing updated guidelines for accounting method changes for specified research or experimental expenditures.

The new guidance, posted today on IRS.gov, modifies and supersedes Revenue Procedure 2023-8, issued earlier this month. Revenue Procedure 2023-11 is designed to encourage timely compliance with changes made by the Tax Cuts and Jobs Act, enacted in 2017.

In general, the TCJA changes apply for specified research or experimental expenditures paid or incurred in taxable years beginning after Dec. 31, 2021.