806
The following diagnostic is generating:
$ {IncResearchCr} of the Increasing Research Activities Credit was disallowed due to limitations under IRC Section 41(g).
Solution:
This diagnostic is triggered when a portion of the Increasing Research Activities Credit (commonly referred to as the R&D credit) is disallowed because of ownership limitations specified in Internal Revenue Code §41(g). What to check: 1. Review ownership structure and activity levels of those receiving the credit. 2. If the owners are not materially participating or if the credit exceeds allowable thresholds, the disallowance is correct. 3. If you believe this is an error, re-check the partner/shareholder participation status and credit allocations.
