Reading Time: 2 minutes 45 seconds
The federal Research & Development tax credit is a lucrative incentive designed to reward businesses that focus on innovation. Unfortunately, many eligible businesses do not make a claim because of various misconceptions. The reality is that companies across several industries can often qualify based on general business activities. While certainly good news, it requires management to select a provider that can evaluate eligible expenses and examine other eligibility criteria. It can be difficult to know which provider to choose because there often appears to be little difference between them. While this does make it difficult, there are certain advantages to hiring a CPA firm, such as JLK Rosenberger, to manage the process. This includes a greater depth of expertise, flexible processes, and a holistic approach.
Why JLK Rosenberger?
Expertise is one of the most important criteria to consider when selecting an advisor to conduct an R&D tax credit study. JLK Rosenberger has significant experience assisting companies across multiple industries, including construction, technology, manufacturing, insurance, and more. This intimate knowledge allows us to quickly evaluate a company’s activities, identify eligible expenses, and calculate estimated savings.
JLK Rosenberger handles all research and development studies internally instead of hiring external vendors like many firms do. We employ a dedicated, full-time R&D specialist who has nearly ten years of experience in this field. Additionally, this expert’s background as a lawyer allows us to understand and integrate the latest legal developments immediately. This capability provides us with a higher degree of insight and expertise that you won’t find elsewhere.
Many providers rely on a one-size-fits-all approach, which is rigid. In many cases, the information can pass through the hands of several professionals working on the file in various supervisory and support roles. Unfortunately, not only can this be impractical, but it does not take into account the specific opportunities available for those operating in various industries. The result is often wasted time, unnecessary resources, and expenses to compile information, which may not even be necessary.
For this reason, JLK Rosenberger tailors each R&D analysis based on the specific circumstances of each business. Our team works with clients to develop a plan based on the industry and business operations, including how information is tracked and documented through systems, staff time required, and the support needed to claim the credit. The goal is to determine how to best gather relevant documentation to quantify eligible research expenses. Armed with this information, our team can assess the level of support needed to tailor the analysis and deliverables to client circumstances.
Unlike other providers, which base fees on a percentage of the expected refund, JLK Rosenberger takes a different approach. As a CPA firm, we cannot base our fees on a percentage of the total credit amount. Instead, our firm invoices based on time incurred and provides an estimate of the expected engagement cost upfront so clients know what to expect and plan for. This also helps minimize any surprises if the credit identified is larger than anticipated.
This approach benefits clients because sometimes a R&D credit is identified that a taxpayer cannot immediately use and must be carried forward for many years. Currently, it takes some time, often many months, to realize the benefit of the amended return. Finally, the comprehensive review of the client’s tax situation allows us to understand how the expected R&D credit amount can impact other areas, such as Section 174 amortization requirements.
Businesses interested in claiming the federal R&D tax credit need to carefully select a qualified provider. Rather than relying on a rigid process built upon standardized checklists, upgrade your experience with our firm. If you have a question about the credit or need assistance conducting your R&D study, JLK Rosenberger can help. For additional information, call 949-860-9902 or click here to contact us. We look forward to speaking with you soon.