Research & Development Tax Credits Accounting and Auditing
IRS regulations finalized in 2003 make it significantly easier for more companies to qualify for the Research & Development Tax Credit. Record keeping requirements have been liberalized. The discovery test relating to new information has been significantly eased. Process improvements are now included as a qualified activity.
Who qualifies for the credit?
A Company Qualifies When One or More of These Criteria Are Met:
- Fights to survive international and domestic competition.
- Invests time, money or resources to advance or improve their products or processes.
- Manufactures products.
- Maintains a staff of technical personnel such as engineers, designers, labs, chemists.
- Invests in continuous improvement projects.
- Implements cost reduction initiatives.
- Attempts to use new materials.
- Adds new equipment.
- Develops prototypes, jigs, fixtures and molds.
- Automates or streamlines internal processes.
- Develops new technologies.
- Performs testing functions.
- Develops, implements or upgrades systems or software.
- Develops proprietary software applications for resale.
- Obtains patents.
- Spends money on outside consultants to do any of these things.
Some examples of the benefits of R&D Tax Credit studies
| Industry Type | Gross Sales | Total Benefit Received |
|---|---|---|
| Plastic - Blow Moulder | $49,000,000.00 | $283,000.00 |
| Metal Fabrication | $42,000,000.00 | $704,000.00 |
| Plastic Consumer Products | $20,000,000.00 | $184,000.00 |
| Equipment Manufacturer | $24,000,000.00 | $356,000.00 |
| Instrument Manufacturer | $8,000,000.00 | $156,000.00 |
| Consumer Products Manufacturer | $16,000,000.00 | $136,000.00 |
Why Choose Tax Credit Services?
Maximized Benefit
We ensure the federal and state benefit is maximized. Our R&D and technical expertise and your support allows us to accurately plan for your short- and long-term ability to maximize the federal and state credit.
Longevity
Tax Credit Services has a proven track record for service and support.
Lessened Audit Risk
IRS requires contemporaneous documentation to support the credit claim. Tax Credit Services's R&D study methodology will achieve IRS requirements for credit claims.
Quantified Benefit
A pre-engagement visit to the facility ensures the estimated benefit analysis is realistic.
Fixed-Fee Billing
Our fees are straightforward and are based on an accurate pre-engagement analysis of the business -- No "contingent-based" or "success-based" billing.
Contact TCS today to get started down the path for R&D credits for your organization.