Contracts matter to the IRS, so it is important to take a closer look at funded research and what it means to the Research and Development Tax Credit. Research expenses are considered funded if they are compensated by grants, contracts, persons or government entities. To be eligible for the R&D…
A company is able to obtain benefits from the Research and Development Tax Credit as long as they have Qualified Research Expenses (QREs). The IRS defines QREs as the sum of “in-house research expenses” and “contract research expenses”. Those in-house research expenses include: Wages: Taxable or subject to self-employment tax…
In addition to the Research and Development (R&D) Tax Credit’s IRS requirements and guidelines, the IRS also requires the “consistency rule” be used as a basis to request and collect financial and technical information for current and open tax years. The “consistency rule” states that the qualified research expenses (QREs)…
While claiming the Research and Development Tax Credit can be extremely beneficial to companies, it is also a complex task requiring a deep understanding of tax code legislation. Here at Indago, we are a full-service tax credits service provider with extensive experience in dealing with both the federal and state…
Come one, come all! We have officially launched the rad app, a ground-breaking way to process R&D Tax Credit claims online. It’s the first of its kind and we can’t wait for you to check it out. Our thoughtfully designed and streamlined technology allows for your business to maximize its R&D…
Does your company use internal software to increase operations or sales efficacy? Great news! You might be able to claim it when you file your taxes under the Research and Development (R&D) Tax Credit. In early 2015, the IRS released a new set of regulations that determine what qualifies as…
The Research and Development Tax Credit was created by Congress in 1981 as a way to help companies in the United States stay competitive within the global marketplace. The PATH Act (Protecting Americans from Tax Hikes Act) officially made the R&D Tax Credit permanent on December 18, 2015. The PATH…
The Protecting Americans Against Tax Hikes (PATH) Act of 2015 created and enhanced major sections of the tax code regularly spotlighted by growing business owners. Here, we will take a closer look at the most popular items in the PATH Act. 1. Section 179 Expensing Election Sec. 179 of the…