Posted by Jeffrey Feingold on 04.06.22

Consider making the R&D tax credit part of your long-term strategic planning and make sure you’re not leaving money you’ve earned on the table.

The R&D tax credit has been an elusive target for many businesses. Confusion about qualification and documentation has left this attractive tax credit largely the domain of large companies and the high-tech industry. That is why we recommend that business owners partner with an outside expert to manage the nuts and bolts of an R&D tax credit study for their company.

An R&D tax credit study from a professional R&D tax expert will help you determine which activities qualify, as well as guide you through the documentation needed for eligibility. Eligibility requirements are clearly defined by the IRS and state governments—companies seeking to take advantage of the credit must be prepared to identify, document and support their qualifying activities. It is essential that businesses establish appropriate tracking mechanisms and documentation strategies for their R&D activities.

For example, the calculation of R&D tax credits is determined based on the specific industry and qualifying activities. Federal and state filing requirements vary, so you’ll want to work with your tax credit expert on supplying the required documentation to each government entity.

Read Our FREE guide: The Business Owner's Guide to R&D Tax Credits

What to Look For

Once you understand that R&D tax credits present an outstanding opportunity to grow your business, you will want to look for specific qualifications in a tax credit partner. The ideal partner will:

• Provide outstanding references
• Have an extensive, positive reputation in the business community
• Have the resources to service your business’ clients locally throughout the U.S.
• Have an outstanding record of success defending their R&D tax credit studies
• Be accessible to your company
• Possess the highest degree of integrity
• Understand your business or industry
• Charge reasonable and justifiable fees

The R&D tax credit can be a lucrative incentive for innovative businesses. Given the new permanent nature of the tax credit, now is the time to consider whether activities performed by your company qualify for major cash-saving tax credit opportunities.

A tax professional with R&D tax credit expertise can help your business qualify for and claim eligible credit. Partnering with a recognized R&D tax credit expert like Tax Point Advisors, that focuses exclusively on attaining the maximum number of credits for your company, makes good, practical sense.

Request a free assessment to determine qualifying R&D tax credit eligibility

Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with CPAs and their business clients who may qualify for R&D tax benefits. For more information, read our FREE e-book: The Business Owner's Guide to R&D Tax Credits or call us at 800-260-4138.