Moore v. Commissioner of Internal Revenue

Tax court did not err in a matter involving a section 41 of the Internal Revenue Code, which allows tax credits for “qualified” research expenses. The appellate court explained that plaintiffs bore the burdens of production and persuasion and failed to meet their burden where there was a lack of documentation regarding the amount of time an employee dedicated to qualified research and where they were unable to estimate how much of the research performed by the employee involved “experimentation” so that it would qualify as a research expense under the tax code. (JACKSON-AKIWUMI and LEE, concurring)