Read more to understand the Impact on the Research & Development Tax Credit Under Section 41 ...
The Research & Development (R&D) Tax Credit is a government incentive available to companies who create or improve a product or process used by their business. Companies may claim on eligible expenses for activities that fit the IRS criteria for research and development. This dollar-for-dollar credit offsets your income tax liability or payroll tax liability.
Leyton’s highly qualified tax and technical teams produce a thorough technical report to help substantiate each claim and ensure that the value of each claim is in full compliance with relevant tax legislation.
Your R&D study will investigate what qualified activities have been performed during the relevant tax years and to what extent associated expenditure qualifies. To the extent you have documentation readily on hand, your process will be even more efficient from your team’s perspective.
The sooner you have your study prepared, the sooner you can start claiming R&D Tax Credits for your business! We will get you engaged for the study and introduced to your tax and technical team. They will work with you to confirm if it indeed makes sense for you to claim the credit on your 2020 Tax Return and work with you to determine:
Through years of experience as R&D Tax Credit experts, we have observed that companies often file their claim at the last minute, or extend their deadlines. Getting a head start on your R&D Study can allow you to file your taxes in a timely manner and start claiming the benefits sooner rather than later.
To get started on the technical portion of your study, we require technical documentation that supports any development during the year.
These technical documents can include the following:
At this time, to address the financial portion of your study, we may request prior years’ tax returns to start substantiating your claim and confirm that it does make sense for you to claim the credit from a financial perspective.
Many CPAs and tax professionals must wait till the last minute to file their clients’ tax returns because they are waiting on their R&D Study to be completed. By building an R&D Tax Credit claim now, your CPA may be able to finalize your company’s tax return earlier. Ideally, this will make your CPA’s life easier, because they will face less of a time crunch during busy tax season!
Reach out to us today! We follow a simple 3 step process to get you started:
Step 1: Get in touch with our R&D Tax Credit experts to establish your company’s eligibility for the R&D Tax Credit.
Step 2: Gather technical documentation and attend an initial assessment call with our tax and technical teams to receive your credit estimate and establish an optimal claim timeline. Continue to engage with your dedicated team via emails and phone calls to review eligible projects and costs to build your claim.
Step 3: File your R&D Tax Credit claim!
Founded in 1997, Leyton is a global innovation funding consultancy dedicated to helping our clients improve their business performance. In the US, our specific expertise is in optimization of Federal and State Research & Development (R&D) Tax Credits. As a business, we want to help unleash our clients potential and be a strategic partner in their evolution and growth.