Research and development (R&D) tax deductions and credits have long held bipartisan political support in Congress and throughout the business and consulting world. However, as part of the 2017 Tax Cuts and Jobs Act, IRC Section 174(a) was amended to require amortization and capitalization of such costs over five years for domestic costs and 15 years for foreign costs as of Jan 1, 2022.
Business and tax consultants have warned that such a change could disincentivize R&D spending in the US due to timing issues between revenue recognition and funding deductions created by the new depreciation rule.Learn More
Technological innovation involves substantial annual expenditures by many US businesses. Our Research & Development (R&D) Tax Credit specialists assist companies in determining their allowable tax credit, while helping to substantiate those credits with the proper documentation required to withstand IRS scrutiny.
While the R&D tax credit has been a part of the tax code for more than 30 years, there’s no doubt that it is a proven method for reducing or eliminating tax liability and increasing cash flow. The tax definition of R&D is much broader than the traditional term “R&D.” It includes formal R&D activities and R&D groups, but also include developments and improvements related to products and operational processes.
Our team possesses the expertise to properly identify R&D opportunities, maximize the benefit you may have earned and -equally important- have the relevant experience to defend R&D tax credit claims under IRS examination.
What is the R&D tax credit?
The R&D tax credit is intended to stimulate technological innovation and is available to all companies performing qualifying R&D within the United States. The R&D tax credit is comprised of both qualified research activities (QRAs) and qualified research expenditures (QREs).
Qualified research activities are defined as activities taking place to develop a new business component or process improvement and must meet the four-part test:
Qualified research expenditures are defined as:
First, we will provide a free assessment to estimate the amount of credits for which you may be eligible. If engaged to do a study, our team will strive to limit the interactions with your company. There are no specific recordkeeping requirements to be eligible for the R&D tax credits nor is there any requirement that you re-create any information.
Our R&D tax credit specialists are very skilled and experienced at understanding your accounting policies and recordkeeping culture to ensure that they meet any IRS exam guidelines. Our typical project interaction involves a half day visit to your location. Our tools and guidance can make the exercise of claiming R&D tax credits annually a smooth and enthusiastic initiative.
Our audit and assurance services help you get to know your business even better and on every level. We work with you to help you meet assurance demands. Our audits provide essential insights into the current state of your business and help you to envision and plan a stronger future for your organization.Learn More
Our consultants collaborate with you to develop and execute specialized solutions uniquely tailored to your unique situation,through our specialized consulting services, we help you optimize profitability and growth, improve workflow and processes, identify and implement technologies, manage risk and compliance, and more.Learn More
Our specialty-trained team of advisors work with clients to ensure success in various business needs, including Transaction Services, Corporate Finance, Client Accounting Advisory Services, and International Business Services. We work with you every step of the day to ensure your company is receiving and utilizing to best information and tools to achieve success.Learn More