What is the Research & Development Tax Credit?

GBACOThe Internal Revenue Code provides a credit against tax, based on a percentage of qualifying research expenses, incurred during a tax year. The Credit is equal to 20% (13% for reduced credit option) of the qualifying R&D expenses that exceed a certain base amount:

        Applies to internal processes as well as external product development.

        Available for claiming through June 2004 and prior open tax years.

 

What are Qualifying Research Expenses?

Employee wages, research supplies and materials, subcontractor expenses, and computer leasing and time-sharing costs.

Why Do Businesses Need A Research and Development Credit Study?

Many businesses overlook the availability of the Credit and need help with the identification of qualifying projects to quantify and capture all eligible R&D costs. The study provides a guide in meeting the documentation requirements set forth by the Internal Revenue Code, and it justifies amended tax returns. This translates into more money for you.

Why Goff Backa Alfera & Company?

  • Experience: Richard J. Alfera, CPA, MST - President
  • Highly skilled tax professionals who have extensive “Big Five” exerience and specialized IRS tax knowledge providing R&D Credit Study Services to companies throughout the United States.
  • Proven results in millions of tax dollar savings and refunds for manufacturing, technology, financial services and utility companies.

    • The R&D Credit and Tax Refund Potential – GBACO Two Step Process

    Step I

    GBACO meets with top executives and department heads to develop a strategic work plan.
    GBACO meets with each person in charge of the research and development projects.
    GBACO will interview each person assigned to the research and development project team.
    GBACO will prepare a written analysis along with contemporaneous documentation obtained from the client’s research personnel.
    GBACO’s written analysis will document how each research and development project meets the stringent Internal Revenue Code and Regulation standards of qualifying for the Research and Development Tax Credit.

    Step II

    GBACO will work with accounting personnel to capture research and development costs related to each project that we have identified and documented in Step One of the study.
    GBACO will prepare amended corporate tax returns for open years.
    For flow through entities, GBACO will amend each owner’s individual income tax return for the same years, if requested.
    GBACO categorizes our documentation and written analysis by project and/or department and will provide a bound copy to the client.
    GBACO will represent the client in an Internal Revenue Service audit to review the Research and Development Credit claimed.

    Want to know if you qualify for some substantial tax returns?

    Have your numbers ready and use our complimentary service. This free evaluation does not track any information put into it and is in no way an absolute indicator of what an actual return will be, it is merely a tool to assess whether any further evaluation is warranted.