Designed to foster technological advancement, §41 of the Internal Revenue Code (Research and Development Tax Credits) offers generous tax incentives to taxpayers engaged in qualified research.  Due to the complexity of its requirements, this lucrative credit is often underutilized by small to medium sized businesses. To harness the most dramatic savings under the lucrative R&D Tax Credit, businesses must consider research activities conducted during the three years preceding the current tax year.  If a business discovers that it engaged in qualified research (if unsure – we will assist you in determining eligibility) activities during this three-year “look back period” and did not claim the R&D Credit, it may simply file an amended return for those years to receive a tax refund.  The look back period may be even longer under the statutes of certain states. Filing an amended return has recently become simpler, allowing more taxpayers to benefit from the look back period.  As of June 2014, businesses have been able to use the Alternative Simplified Credit (ASC) method of calculation, as opposed to the significantly more complicated Regular Research Credit (RRC) method, on amended returns.  (Source: http://www.irs.gov/irb/2014-26_IRB/ar07.html).

The R&D Tax Credit is often underutilized when businesses erroneously assume that their research activities will not qualify.  In reality, the credit is frequently granted for a wide range of activities to businesses representing various industries, including engineering, architecture, manufacturing, and technology.  Capital Review Group (CRG) provides the expertise to help businesses capture the maximum savings under the R&D Tax Credit for qualified activities conducted in the current year as well as during the state and federal look back periods.

To find out if your business qualifies, contact Capital Review Group at 877.666.5539.