By: Jim Foster, JD, Director of Tax
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September 15, 2025 (October 15 for C-Corps) – Superseded Returns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gross receipts under $31 million, the IRS may treat certain 2024 timely filed returns (including extensions and/or superseded returns) as if an election was made automatically.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.
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
📩 Stay Ahead of Tax Policy Shifts
Not on our update list? Sign up here to receive ABGi’s insights directly in your inbox.
