Posted by Jeffrey M. Feingold on 07.15.11
Deadline Fast Approaching for Key Tax Credits
Many of Tax Point Advisors' CPA partners and their clients have 9/15 or 10/15 tax deadlines. This is a perfect opportunity to consider the potential of an R&D tax credit claim.
For example, a company with a 12/31 year-end, which extended its 2007 tax return and which is planning on filing on or near 9/15, has until the extended filing date before their 2007 R&D tax credit will expire.
Additionally, an S-Corp or other pass-through entity, for which the shareholders might have an extended filing deadline of 10/15, would have until that same October date to capture their 2007 R&D tax credit before it expires. In other words, for a pass-through entity, the statutory deadline is determined by the deadline for the company owners, even if that is after the statutory deadline for the entity itself.
This can benefit your client both in terms of 2007 and 2010. For 2007, as noted, the credit might be available as late as this October before the credit is then lost forever. For 2010 tax years, there's still time to claim the 2010 credit on a timely filed extended return, in order to avoid the need to amend at a later date.
Contact us to discuss your clients' eligibility; there may still be time for them to benefit from the 2007 through 2010 available credits.