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)…
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…
A company is able to obtain benefits from the Research and Development Tax Credit as long as they have Qualified Research Expenses (QREs). Qualifying Expenses The IRS defines Qualified Research Expenses (QREs) as the sum of “in-house research expenses” and “contract research expenses”. Those expenses include: Wages: Taxable or subject…
Qualified Research Activities (QRA) are an integral part of obtaining the Research and Development Tax Credit. In order for your company to optimize its R&D credits, it must have qualifying activities taking place within its business process. Qualifying Activities For an activity to qualify as a qualified research activity (QRA)…
IRS regulations state that “a taxpayer must retain records in sufficient usable form and detail to substantiate that the expenditures claimed are eligible for the credit.” The taxpayer has to fully comply with this regulation when collecting all the information needed for an audit. The IRS states that if a…