This month, we are starting a series on why you should hire an Outside Consultant to calculate your R&D tax credit, where we will be discussing four different benefits of using an R&D Tax Credit specialist.
1. Their technical expertise
The first benefit of using an outside consultant to claim the R&D Credit is their technical expertise! The technical expertise of an R&D consultant maximizes your benefit, minimizes the time commitment of your business, and ensures your credit claimed is fully compliant and substantiated.
As you know, CPAs, accountants, tax preparers, or whoever may be preparing your tax return focus on all aspects of the tax return and Internal Revenue Code requirements, which is a big responsibility! R&D tax consultants focus solely on one section of the code – Section 41. This section defines the requirements, exclusions, and calculation of the R&D credit. R&D tax consultants also stay up to date on case law and treasury regulations that provide additional guidance on what can be claimed as R&D. There are many moving parts to claiming the R&D credit, including everchanging regulations and IRS guidance, which makes it challenging for you and your CPA to keep up with year after year; and we all know how important the accuracy of any claim on your tax return must be!
2. Their educational background
Additionally, our consultants have education backgrounds in engineering and other hard sciences, which allows them to speak the language of what your company is doing every day. Because our R&D consultants have industry experience and specialize in the credit, they are able to maximize your R&D credit to make sure no money is left on the table, all while ensuring we stay within the parameters of the Internal Revenue Code.
It is good to note that using an R&D consultant does not replace your CPA or tax preparer – here at EPSA we work hand in hand with your CPA to help your company claim the credit and make it as easy as possible for them to include the R&D Credit on the tax returns. Our R&D consultants are industry specialists, which allows us to understand your specific company activities with ease and experience. Ultimately, this makes for a smooth and time efficient process of determining qualified R&D activities specific to your company. We understand that at the end of the day you have a business to run, so minimizing the impact claiming the credit has on your business is a key reason to use a technical R&D expert for claiming the credit.
Want to learn more about our process and how we stand behind the work we provide to our clients? Reach out to us today to request an assessment of your eligibility for the R&D credit and we’ll get back to you within a few hours!