--- title: IRS Issues New Guidance on R&D Expenditures – Short Windows to Act description: The IRS just released Rev. Proc. 2025-28, offering favorable but complex guidance on R&D expensing under the OBBBA. Learn the critical September 15 and October 15 deadlines and what actions businesses must take now to secure tax savings. image: https://blog.abgi-usa.com/hubfs/IRS%20Issues%20New%20Guidance%20on%20R%26D%20Expenditures%20%E2%80%93%20Short%20Windows%20to%20Act.jpg --- [Skip to content](https://blog.abgi-usa.com/articles/irs-guidance-rd-expenditures-deadlines-2025#main-content) [![en-black-full](https://blog.abgi-usa.com/hubfs/en-black-full.svg "en-black-full")](https://abgi-usa.com/) - [Our Services](https://abgi-usa.com/services) - Insights - [Tax Updates](https://abgi-usa.com/section174/latest-and-greatest) - [Articles](https://abgi-usa.com/articles) - [Events & Webinars](https://abgi-usa.com/about-us/event-and-webinars) - About ABGi - [History](https://abgi-usa.com/about-us/our-history) - [Our Team](https://abgi-usa.com/about-us/our-team) - [Testimonials](https://abgi-usa.com/about-us/testimonials) - [Become a Partner](https://abgi-usa.com/about-us/our-partners) - [Careers](https://abgi-usa.com/careers) - [Contact Us](https://abgi-usa.com/contact) - [Section 174](https://blog.abgi-usa.com/articles/tag/section-174), - [R&D Tax Credit](https://blog.abgi-usa.com/articles/tag/rd-tax-credit), - [News](https://blog.abgi-usa.com/articles/tag/news) # IRS Issues New Guidance on R&D Expenditures – Short Windows to Act - September 5, 2025 [ABGi USA](https://blog.abgi-usa.com/articles/author/abgi-usa) By: [Jim Foster, JD, Director of Tax ](https://www.linkedin.com/in/jim-d-foster/) On August 28, 2025, the IRS released Revenue Procedure 2025-28, a 61-page document providing long-awaited guidance on how businesses can handle research and development (R&D) expenses under the One Big Beautiful Bill Act (OBBBA). The guidance is generally favorable — but it comes with very tight deadlines and complex requirements that demand quick action from businesses and their advisors.  --- --- ## Key Deadlines You Need to Know September 15, 2025 (October 15 for C-Corps) – Superseded Returns Think of this as a “do-over” return. Eligible taxpayers may be able to replace their original 2024 filing and take advantage of immediate expensing provisions. This daunting deadline applies whether or not an extension was filed, creating a very narrow window. Extension Deadline (September 15 or October 15) – Deemed Election for Small Businesses  For companies with average annual gross receipts under $31 million, the IRS may treat certain 2024 timely filed returns (including extensions and/or superseded returns) as if an election was made automatically. In practice, this could provide a faster path to deducting R&D expenses without extra paperwork — but only if the return is filed correctly and by the extension deadline. There are other requirements to be done on other returns if this option is selected.   ## Why This Matters These changes create opportunities for meaningful tax savings, but the deadlines are unforgiving. Missing them could mean lost cash flow or added compliance risk.  What You Need to Do Now The IRS has opened the door to favorable options, but businesses have **days, not months**, to decide on the right approach. The **September 15/October 15** deadlines are approaching fast.  ABGi USA is here to help CPAs and business leaders evaluate filings, ensure compliance, and determine the best strategy to secure the most favorable tax position for the 2022–2024 tax years.    [![Schedule a Strategy Call](https://no-cache.hubspot.com/cta/default/22760269/interactive-194106816143.png)](https://blog.abgi-usa.com/hs/cta/wi/redirect?encryptedPayload=AVxigLL9qyh6tIeTHhKB7DjJ%2FdRjvsNe2WHA8KAaPSaPCS7yYTU2Qb25193RlZ%2F8lnb%2BWHYzl8uzdqM6FIMrwEoD%2BDluYKKRSC3J%2F%2FmQTqFB0yzOTEc9YUqwW%2BBQ8TdlwaSVrc%2BhYKzgvwaryg%2BdmWzH9bTfHfPM414RjzOzY4uR7uA%3D&webInteractiveContentId=194106816143&portalId=22760269)     [![ABGi USA Leadership Team](https://blog.abgi-usa.com/hs-fs/hubfs/ABGi%20USA%20Leadership%20Team.png?width=270&height=270&name=ABGi%20USA%20Leadership%20Team.png)](https://abgi-usa.com/about-us/our-team/jim-foster) Jim Foster, JD Jim Foster, JD, serves as Director of Tax at ABGi USA, where he leads the firm’s strategic delivery of incentive solutions. With nearly two decades of experience in tax law, Jim is recognized for his legal and technical mastery, ability to drive internal and external value, and audit defense success and relationship-build with the IRS. [Read More](https://abgi-usa.com/about-us/our-team/jim-foster) [mailto:jim.foster@abgi-usa.com](mailto:jim.foster@abgi-usa.com)     📩 **Stay Ahead of Tax Policy Shifts** Not on our update list? 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