Investing in technological innovation is at the heart of growing businesses and the focus of the Research Tax Credit. For companies to qualify, they must typically be unique at some level from its competitors and peers. However, because companies’ approaches to innovation may be different, circumstances may require different approaches to claim the credit. In order to be complete in our analysis, our engineers perform retroactive engagements, current-year evaluations, and “a la carte” services including audit defense and contract reviews.
Companies that qualify for the R&D Tax Credit can typically look back three open tax years to claim credits generated during that time period; often times resulting in refund checks. This generates immediate cash flow at the federal and certain state levels for tax paying companies. Retroactive studies allow the taxpayer to establish a baseline on activities and methodologies for years going forward. Additionally, unused credits can be carried forward up to 20 years for those who have generated a credit, but who have been in a net operating loss.
Current year studies are the natural step for companies who have already solidified their research credit baseline. For startups and companies who do not have contemporaneous documentation from research in previous years, a current year study can be the foundation to build an audit-ready case to claim the credit now and for years to come.
Sometimes companies find themselves in a position where they must substantiate their claims at the Federal or State level. If their claims have not been ascertained through engineering studies, they can find themselves in a vulnerable position. For this reason, we offer audit defense and contract review a la carte. Our professionals have extensive experience representing their clients before the IRS and state regulatory agencies; and maintain an audit record that is unequaled in our industry.