Double Check Before you Claim that Research & Experimentation Tax Credit!
In my previous blog post , I talked about what exactly the research and experimentation tax credit is. Now that you know what it is, and are thinking you may qualify for it, how do you prove your claim to the IRS? The federal Research and Experimentation Tax Credit has had its fair share of attention, especially lately. The credit is something often overlooked by companies as it is something you do in the ordinary course of business, and don’t think of the tax savings it can provide. While the credit can stimulate investment in research activities and provide huge benefits, the credit is subject to much IRS review and should not be taken lightly.
There are several items you should keep in mind before you claim the tax credit. There have been several court cases surrounding this issue in the last few years that provide guidance on how to make your R&E tax credit claim. See the Accounting Today article or contact your Anders advisor for more information.