R&D Tax Credits

Research & Development (R&D) Tax Credit Services

The Research and Development (R&D) Tax Credit is an IRS tax incentive that rewards businesses for innovation and technical improvement. It's worth noting that businesses across most industries and sectors can qualify for this credit, as long as they are actively working to enhance their products or services. If your company invests time and resources in developing new designs or refining existing processes, you may be eligible.

Claiming the R&D Tax Credit can be complex because you must satisfy the government's four-part test, which we'll explore further below. At Furdock & Foglia Law LLP, we have experience working with businesses to identify activities that meet the specific criteria established by the IRS. We'll help document your research and development efforts to satisfy that four-part test, and we can also assist with any appeals or other complications that arise. Contact Furdock & Foglia Law LLP to set up a consultation about your R&D Tax Credit.

R&D Tax Credit Qualification Requirements

To qualify for the R&D Tax Credit, your activities must generally pass a four-part test established by the IRS. These requirements ensure that the credit supports genuine technical progress rather than routine business operations. Our attorneys can help you evaluate your projects to determine whether they meet these standards:

1. Permitted Purpose: The work must aim to improve the function, performance, reliability, or quality of a product or process.
2. Technological in Nature: The research must fundamentally rely on hard sciences, such as engineering, physics, or computer science.
3. Elimination of Uncertainty: You must demonstrate that you faced a technical challenge where the solution or method was not known at the outset.
4. Process of Experimentation: Your team must have employed a systematic approach — such as trial and error or modeling — to evaluate different alternatives.

Once we identify the qualifying projects, our team helps you calculate the specific expenses eligible for inclusion in your claim. This includes the taxable wages of employees directly involved in research or those who supervise the innovation process. We also examine the cost of materials used during testing and a portion of payments made to outside contractors. Having a knowledgeable attorney review these figures ensures that your claim is accurate and reflects the true scope of your investment in innovation.

R&D Audit Support

If the IRS decides to review your claim, having experienced R&D audit support can save you significant time and stress. An audit can feel intimidating, but it is often simply a request for additional evidence to substantiate the figures reported on your return. The IRS will want to see contemporaneous records proving your expenses were tied to specific qualified research activities. This might include project notes, emails, payroll records, and design blueprints created during the development phase.

At Furdock & Foglia Law LLP, we help you organize this information to present a clear narrative of your innovation and the technical challenges you encountered. By providing a well-structured defense, we aim to resolve any questions efficiently and expedite your tax credit. Our goal is to handle the legal complexities and minimize your stress so you can focus on running your business.

Discuss Your R&D Tax Credit with Furdock & Foglia Law LLP

Furdock & Foglia Law LLP is dedicated to helping business owners maximize their financial potential through strategic tax planning. Our attorneys take a hands-on approach to evaluating your research activities and building a defensible claim for the R&D Tax Credit. Whether you're just beginning to explore your eligibility or are in the middle of an audit, we provide the guidance you need. We are committed to ensuring you understand the process and feel supported at every stage.

Don't let the opportunity to reduce your tax burden slip away because the rules seem too difficult to navigate. We can take the weight of tax compliance off your shoulders so you can concentrate on growing your company. Our team is ready to help you identify every eligible expense so your business can thrive. Reach out to Furdock & Foglia Law LLP today to set up a consultation about our business tax and legal services.

‍