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I’ve Filed My Taxes…Now What?

I’ve Filed My Taxes…Now What?

You may think that after filing taxes, it’s back to business. However, when tax season comes again, you start to worry why you didn’t think of the requirements sooner. Well, we’re here to help you. Here are five tips to remember throughout the year so you are ready when it is time to file for the R&D Tax Credit for your business:

1. Document, document, document. Any form of documentation matters when it comes to the R&D Tax Credit. Whether that’s an idea written on a piece of napkin, a solution on a post-it, a picture, or a process on a whole page, your company may be eligible for the tax incentive. It may sound horrendous to be keeping all those documents filed but trust us, it will make your life so much easier. A lot of companies take for granted how small ideas eventually come into fruition but don’t remember how it all came about because they weren’t well-documented. Remember: document Every. Single. Idea.

To make sure everything is organized, prepare a project list. It would be best to include what projects your firm worked on whether successful or not and who worked on it (if possible). Remember, projects may include product development as well as process development. Take note: failed projects are perfect for the credit. In fact, the more projects you put for evaluation, the more potential credit your firm can get.

2. Innovate. It is essential for a business to be innovative, efficient, stronger, and better in nature. There must be a significant improvement done in a product or process to be considered for the credit. Anything in aesthetics will not be considered for the credit. For new ideas, keep updated with new trends in your industry, read up on current events, and interact with people of different fields of study to generate new ideas that may benefit your company and, eventually, your tax credit.

3. Review old tax forms and documents submitted to make sure all taxes have been credited for regardless of the year it was filed. Don’t forget to store them properly so you remember to include them together with the new documents you will be required to submit. Research and development activities are eligible for the R&D tax credit for up to three years back.

For eligible small businesses, if your firm’s average annual growth receipts over the prior three years are less than $50M, the R&D credit is not subject to Alternative Minimum Tax (AMT). If your firm is not subject to Alternative Minimum Tax (AMT), make sure to place it on the correct part of Form 3800. Not noting this properly might limit the credit utilization.

4. Be careful during the review period. The R&D Tax Credit is not as straightforward as it seems. Many exceptions and exclusions to qualified research are pitfalls that technical experts might be aware of but your firm may not be. It is best to consult with your CPA and a specialist to review any fact patterns.

5. Ask for help. You don’t have to do the work alone. If you are unsure of any of the legalities and regulations, our technical experts and experienced professionals in the fields of accounting, law, and engineering will be more than happy to assist you for any questions or concerns you may have for the R&D Tax Credit. At HIREtech, we make sure you maximize your savings and minimize potential risk. Your time matters to us.

Not sure if your firm is eligible for the R&D Tax Credit? With over 13 years of experience, HIREtech assists firms file to for research and development tax credits. For more information, click here or send us an email at This email address is being protected from spambots. You need JavaScript enabled to view it..

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