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Details Matter: Little Sandy Coal Co.
Summary: The R&D Tax Credit represents some of the most complex tax law in the code. The recent Little Sandy Coal Co., TC Memo. 2021-15...
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Missed Opportunities Are the Worst
Especially when it comes to tax savings.
The R&D Tax Credit was created to incentivize innovation and increase your profitability. Join more than 15 million American taxpayers from all industries who take advantage of the R&D tax credit every year.
Our specialty tax firm works with your CPA to ensure you receive these valuable benefits.
Turn your innovation into tax savings.
If your company is engaged in research and development (R&D), you may be eligible for substantial tax credits to offset your expenses.
Qualifying research and development expenses include the development, improvement, or design of a product, technique, process, or software.
This credit can lead to significant savings that free up cash for further R&D, hiring new employees, and more. For companies that meet the criteria of a Qualified Small Business, the R&D credit can be used to offset quarterly payroll taxes.
For tax years 2016 through 2022, the maximum R&D tax credit for payroll tax was $250,000. The credit doubled to $500,000 beginning January 1, 2023. Many states have also enacted an R&D credit.
How do I know if my projects qualify?
All activities must meet the requirements of The 4-Part Test in order to determine whether the associated project expenses can be included in the credit calculations.
Purpose
The research must impart new or improved functionality, performance, reliability, or quality to a product, process, formulation, invention, software, or technique.
Technological
The activity undertaken must rely on the principles of “hard” sciences including physics, biology, engineering, chemistry, or computer science.
Eliminating Uncertainty
From the outset of the project, the development team must encounter technical uncertainty regarding the optimal design, methodology, or capability to achieve project specifications.
Experimentation
The activities constitute a process of experimentation with the intent to resolve the technical uncertainty through the systematic evaluation of alternate solutions.
The 4-Part Test is the most challenging and extensive part of any R&D Tax Credit Claim. It is imperative to have an experienced hand to ensure that your R&D Tax Credits are properly calculated and substantiated.
Making the Complex Easy
Many healthcare professionals tackle clinical uncertainties as they develop treatment protocols.
Through an iterative process of process and outcome evaluations, they identify pathways that are more or less likely to yield positive results.
Once identified, these practice guidelines are implemented in the practice.
This is an R&D process. Our team of experts does the heavy lifting involved to help write up studies, calculate credits, and work with your accounting team so that you can keep doing what you do best - improving patient care.
1. Purpose
A clinician is implementing a new technology or product in patient care. The purpose is to identify an improved patient care pathway or clinical practice guideline for the clinician's own practice.
2. Technological
The new care pathway relies on hard sciences - namely biology, engineering, or chemistry.
3. Eliminating Uncertainty
There may be a scientific paper about the new care pathway, but the sample size is often small or the care is recognized as one potential pathway in the clinician's industry, but there are multiple accepted treatment options, leaving the clinician with the responsibility to identify which path is most likely to yield desired outcomes.
4. Experimentation
With the assistance of TaxRx, the clinician establishes a clinical sample and evaluates the care, making iterative changes to delivery protocols as outcomes are evaluated.
R&D Healthcare Examples
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Testing better, faster, easier, and more cost-effective processes & procedures
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Testing and evaluating new or different materials used within procedures
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Improving processing parameters
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Research leading to publications
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These improvements do not need to be new to your industry, only new to your practice
We've Got Your Back.
A Study in Precision
By reverse-engineering IRS audit techniques, we prepare a best-in-class Study to substantiate your company's eligibility for the Credit.
We speak IRS
Our team has years of experience and thousands of successful R&D credit client reports.
TaxRx Guarantee
Should the IRS have any questions, our R&D experts will help you prepare a response. Learn more.
“TaxRx Group in a helped my practice save money. Their team is receptive, experienced, and professional.”
Jeannie M. Moody, DMD
Moody Orthodontics
“We filed our amended return and it resulted in a significant tax credit.”
John Bender, MD
Miramont Wellness Centers
“I have worked with several Research and Development Credit companies over the years, but the TaxRx Group has been by far the best. They have a great team of industry experts to help with these complex tax credits. We recommend working with TaxRx.”
Shane Warburton, CPA
CFO Ortho PLLC
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