Hello Patricia,
Thank you for your response but I tried that approach and no election statement is generated as part of the return to be filed. The election is very specific and pursuant to Revenue Procedure 2023-8 it must contain the following responses to be effective. Improper elections could require the filing of the complicated Form 3115.
Statement For Section 174 pursuant to Rev. Proc. 2023-8
Company Name and FEIN
Year of Change: calendar year beginning January 1, 2022 and ending December 31, 2022.
The designated accounting method change number is DCN #265.
Types of Expenditures: research and experimentation (R&E) costs related to the [Enter description here].
Amount of R&E expenditures paid or incurred by the applicant during the year of change equals $X,XXX,XXX.
The taxpayer declares that they are changing the method of accounting for specified R&E expenditures to capitalize such expenditures to a R&E capital account and to amortize such costs over either five years for domestic research or 15 years for foreign research.
This declaration is being made on a cutoff basis.
