Companies spend significant time and effort collecting and compiling data and aggregating the documentation necessary to support federal and state research and development (R&D) tax credits. Often this effort is the undertaking of the scientists, engineers, and product development team members with competing priorities. As a result, many companies understate and/or under-document their credits, losing some or all of them on examination.
Stemming from our federal and state research tax credit law and examination experience, we have developed a flexible, customizable technology solution designed to build upon your existing technologies. Our unique web-based solution utilizes Microsoft SharePoint and is designed to minimize disruption to your business by incorporating data from existing payroll and ERP systems. Our team will review your current R&D tax credit methodology and existing technologies to identify opportunities to further leverage our team and technology.
Many taxpayers report GAAP ASC 730 research and development (R&D) costs on their certified audited financial statements. The IRS Large Business and International Division (LB&I) on September 11, 2017 signed guidance that will allow these taxpayers to take advantage of a ‘safe harbor’ under which an adjusted amount of their ASC 730 R&D costs can be determined as qualified research expenses (QRE) for the Section 41 credit for increasing research activities (research credit). If a taxpayer complies with the requirements of the Directive, the LB&I examiners are not to challenge certain QRE amounts for the credit year as set forth in the guidance.