“We don't do R&D”
The research credit does not require laboratories. Developing software, improving a manufacturing process or engineering a new product design routinely qualifies.
Tax service
R&D and business tax credits
Credits are worth far more than deductions and are examined far more closely. We identify the ones you genuinely qualify for and build the contemporaneous documentation that makes them stick.
The problem
Two expensive mistakes
Businesses either miss credits entirely, or claim them on the strength of a sales pitch and cannot defend them later.
Aggressive study, thin file
Contingency-fee credit shops produce large numbers and slim substantiation. When the examiner asks for the project-by-project nexus, there is nothing behind it.
Claimed too late
Payroll-offset elections for the research credit must be made on a timely-filed original return. Miss it and a startup loses the only version of the credit it can actually use.
What we do
Credits we work with
We start from what your business actually does, then test it against the statutory tests, not the other way around.
- Research & Development creditSection 41 qualification against the four-part test, qualified research expense identification, and the regular versus alternative simplified credit calculation.
- R&D payroll tax offsetFor qualified small businesses, electing to apply up to $500,000 of research credit against employer payroll taxes, valuable precisely when there is no income tax to offset.
- Work Opportunity Tax CreditScreening and Form 8850 certification within the 28-day window for hires from targeted groups, which is where most WOTC claims are lost.
- Energy and efficiency incentivesSection 179D deductions for commercial building efficiency and Section 45L credits for qualifying residential units, coordinated with your design team.
- Florida state programsFlorida's research and development tax credit against corporate income tax, plus enterprise-zone and capital investment programs where applicable.
- Section 174 capitalization interactionResearch expenditures must now be capitalized and amortized, which changes the cash-flow arithmetic of a credit claim. We model both together.
- Audit-ready documentationProject narratives, time allocation support, and the contemporaneous business-component nexus that examiners ask for first.
How it works
A process you can follow
Four stages, with a defined deliverable at each one. You always know where the work stands.
1
Qualify
A no-fee scoping conversation. If you do not qualify, we tell you at this stage rather than after a study fee.
2
Study
Interviews with the technical staff who did the work, expense identification from the general ledger and payroll, and business-component mapping.
3
Calculate
Regular and alternative simplified methods computed side by side, with the payroll-offset election evaluated where eligible.
4
Document & defend
A written study you could hand to an examiner, retained by us, and full support if the claim is ever questioned.
Who it's for
Where credits are commonly found
Qualification depends on activity, not industry label. These are the activities that most often qualify in businesses that assumed they did not.
Custom software development Product design and prototyping Process and automation improvement Engineering and design-build Formulation and materials testing Hiring from targeted groups Energy-efficient construction
Deliverables
What you get
- A written qualification memo, including a clear no, where that is the answer
- Project-by-project business component documentation
- Credit calculated under both permitted methods, with the better one explained
- All forms prepared: 6765, 8850, 8974, 8908 as applicable
- Examination support included, at no additional fee, for credits we computed
$500k
Maximum annual R&D payroll offset for qualified small businesses
28 days
WOTC certification window from the start date
4-part
Statutory test applied to every project
Questions
Frequently asked
The four-part test asks whether the work sought to eliminate technical uncertainty, involved a process of experimentation, was technological in nature, and related to a permitted purpose such as a new or improved function, performance, reliability or quality. Plenty of ordinary engineering and software work meets that. Routine data collection, market research, and cosmetic changes do not. We scope it before you commit to a study.
Because the incentives point the wrong way. A firm paid a percentage of the credit has a structural reason to be aggressive and no reason to still be around in three years when the examination letter arrives. We charge a fixed fee, we tell you when the answer is no, and we defend what we compute.
It changes the cash-flow picture, not the credit itself. Research expenditures must be capitalized and amortized rather than deducted immediately, which can raise current taxable income even while you are claiming a credit against it. The two effects have to be modeled together. Looking at the credit alone can produce a badly misleading answer.
Generally three years from the original filing deadline, via amended returns. Retroactive claims face a higher documentation bar because the contemporaneous evidence is thinner, and amended research credit claims must now meet specific IRS information requirements. We will tell you honestly whether a look-back claim is worth pursuing in your case.
Related
Often paired with
Strategic Tax Planning
Multi-year projections that lower the bill before year-end.
Learn moreBusiness Tax Returns
Forms 1120, 1120-S and 1065 filed accurately and on time.
Learn moreIRS & State Audit Representation
We deal with the examiner so you can run the business.
Learn more