It can often come as a big surprise when CPAs and businesses learn how many different industries are eligible for the Research & Development Tax Credit (R&D). These federal and state tax credits offer excellent opportunities to convert R&D expenses (developing new or improved products, processes or software) to valuable…
Startups can benefit from the Federal Research & Development Credit this year and reduce their quarterly tax liabilities with a Payroll Offset of up to $250,000 this year! We know how beneficial the Research and Development Credit (R&D Tax Credit) is when reducing taxable income for profitable companies, as well…
Several stages and activities are involved in the research and development of a product, process or service in order to create them. Some of these stages generally qualify as qualified research activities (QRAS), but others don’t meet the IRS Four-Part Test threshold. In order to obtain the Research and Development…
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…