The October 15 C-corp tax deadline is right around the corner. As a result, business owners and CPAs are scrambling to ensure that they optimize tax credits and minimize overall tax burden — for themselves or for their clients.
One of the biggest cash flow opportunities you may be missing out on this September? The Research and Development tax credit. Made permanent in 2015 as part of the PATH Act, the R&D tax credit offers a dollar-for-dollar credit for organizations with qualifying operations. Some of the many benefits of the Research and Development tax credit include:
Unfortunately, not every business owner that qualifies for the R&D tax credit claims it. This is especially true for smaller organizations.
In fact, data from the U.S. Chamber reveals that “less than three in 10 businesses who qualify for the credit actually claim it, while virtually every large company makes the claim.”
Not claiming qualifying operations can prove costly; the R&D tax credit is a “use it or lose it” incentive and cannot be claimed on an amended tax return. Qualifying businesses that don’t use the benefit when they originally file will miss out.
Do you qualify for the research and development tax credit? Do your clients? Knowing the specific eligibility requirements can ensure you or your clients don’t leave earned tax dollars unclaimed this October 15th. Qualifying companies must meet these requirements:
Most importantly, a business doesn’t have to be profitable to qualify for the R&D tax credit.
The best way to ensure your business or your clients don’t miss out on the research and development credit is to partner with an accounting team specializing in the R&D tax requirements. Acena Consulting can help. Contact us today to speak with an R&D tax credit professional before the October 15 deadline to ensure you’re not leaving tax dollars on the table.