How can my business claim an R&D Tax Credit?

There are two avenues to claiming the R and D credit. First, many Certified Public Accounting (CPA) firms have experienced internal teams that specialize in processing a tax credit for research and development. If your business utilizes one of these firms for accounting or audit work, you may also be able to have them conduct R&D credit studies for your business.

Alternatively, many businesses hire R&D specialists like Endeavor Advisors to capture credits. Many CPA firms and taxpayers prefer this method, as specialists are well equipped and informed on the current state of the R&D credit, as well as IRS requirements for claiming the R&D tax incentive.

R&D credit claims require the requisite industry and legal knowledge to properly complete a credit study. In addition, the various calculation methods undergo reform every few years. The IRS also releases periodical guidance on how to navigate the nuances of the credit. Therefore, it becomes necessary to document and substantiate each and every dollar claimed for each tax year involved.

In terms of your tax filings, the R&D credit is claimed on IRS Form 6765. The required work and diligence to claim credits must be done each year in order to legitimize R&D claims. This process can take weeks or months, depending on the complexity of the study and business. Therefore, the study process must be carefully planned ahead of filing deadlines each year. Each state has its own filing forms and requirements. A good R&D advisory team like Endeavor Advisors is dedicated to ensuring your business meets all of the requirements, and conducting an efficient R&D study.

This page was last updated by Steven Jefferies