Clarus R+D is excited to announce that we are certified SOC 2 (type II) compliant with Vanta. 

Becoming SOC 2 compliant involves adhering to a complex set of standards and requirements pertaining to how a company safeguards data, as well as testing the effectiveness of those measures and ensuring they are performing at the highest level. Being type II compliant involves a more thorough audit process to observe how security functions operate over a longer period of time, instead of an audit done from reports taken at a specific moment in time.

Clarus underwent a 12-month, full 365 day observation, and passed the examination with zero exceptions. This is an extremely high standard that requires a lot of hard work and dedication to meet. Congrats to our software and tech teams on this significant achievement! 

At Clarus R+D, we are committed to the security and protection of client data. Our R&D tax credit platform is built directly from the IRS Audit Technique Guide to provide defensible and complete R&D studies.

This year, the IRS is providing certain relief for taxpayers in affected disaster-areas.

Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until October 16, 2023 to file various federal business tax returns and make tax payments for the 2022 tax year*. More information can be found here. Additionally, relief has been provided for victims of weather-related disasters in some areas of Oklahoma, Indiana, Tennessee, Arkansas, Mississippi, and New York.

Taxpayers in the affected areas may not need to file any extension paperwork, and they do not need to call the IRS to qualify for the extended deadline.

Detailed information on tax relief in disaster areas, disaster assistance and emergency relief for businesses is available on the IRS webpage at this link.

The Clarus R+D team of tax experts is ready to help you claim the R&D tax credit and get the money you deserve. Schedule a free consultation here to get started.

It’s been a busy year at Clarus R+D, and we are honored to have been recognized with several awards throughout 2022. Congratulations to our team for receiving these significant honors, and thank you for your commitment to making the R&D tax credit more accessible to businesses across the country.

Best Places to Work

Clarus R+D is proud to have placed fifth in our category at the 2022 Best Places to Work Awards, presented by Columbus Business First. The nominees for this event were selected based on results from workplace satisfaction surveys completed by their employees. Nominees must also demonstrate strong cultures, values, and missions.

We strive to be a people-first organization and believe that creating a positive, engaging environment translates to success for both our colleagues and clients. We are so grateful to our entire team for making us one of the Best Places to Work!

Fast 50

Clarus R+D placed second at the annual Fast 50 awards. This event honors the companies in the Columbus region who have posted the best growth rates from 2019 through 2021. 

This award is a direct result of our entire team, whose tireless efforts in serving the SMB community have resulted in over $200M in credits claimed to date!

Inno BizTech Fire Awards

Clarus R+D was honored at the Inno BizTech Fire Awards, an annual program recognizing companies that are driving innovation in technology.

Our R&D tax credit platform is built by experts and is derived from IRS guidelines to ensure compliant and defensible studies, all while saving time and eliminating stress.We’re committed to using this technology-based solution to get money back into the hands of other hardworking innovators across the country.

Congrats to our team on this great achievement!

Clarus R+D is proud to be recognized as an honoree for the 2022 Inno BizTech Fire Awards.  This annual program, presented by Columbus Business First, splotlights local companies that are driving innovation through technology.

All  honorees will be celebrated at an event taking place in December 2022.

At Clarus, we are committed to making tax credits accessible to hardworking business owners.  Our world-class platform combines technology and expert support to get money back into the hands of innovators across the country. 

To date, we have helped businesses claim over $200M in credits.

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Clarus R+D is proud to be a recipient of Columbus Business First’s Fast 50 Award for the second consecutive year. This award honors 50 companies in the Columbus region who have posted the best growth rates from 2019 through 2021.

The final rankings will be unveiled at an awards ceremony on October 20th.

At Clarus, we are committed to making tax credits accessible to hardworking business owners across the country.  Our growth is a result of our amazing and dedicated team members who work tirelessly to support SMBs. By combining technology and expert support, the Clarus R+D solution gets money back into the hands of hardworking business owners.

To date, we have helped businesses claim over $200M in credits.

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Clarus R+D is proud to announce that we have been nominated as one of Columbus Business First’s Best Places to Work in Central Ohio. Additionally, we are one of only 10 local companies nominated in our category.

This annual award is Columbus’ longest-running workplace recognition program, and honors local companies who have maintained a supportive and positive environment, especially as they navigate pandemic-related changes and shifts in the business ecosystem. Nominated companies must also “have strong cultures that reinforce values and mission”.

The nominees are determined by workplace satisfaction surveys, completed by their employees, and are then placed into categories based on their size.  The final rankings will be revealed at a celebratory awards gala later this year.

We are grateful to our amazing team for working tirelessly to make tax credits accessible to the small business community, and are proud to be recognized with this award.

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The Inflation Reduction Act is a sweeping $750 billion health care, tax, and climate bill that was signed into law on August 16, 2022. There is a lot of news about this significant legislation and what it’s doing for lowering drug costs and subsidizing clean energy. One topic that isn’t getting enough attention, however, is that this bill is big news for small businesses and startups. To put it simply, the bill impacts the research and development tax credit. It increases the amount of money startups are able to claim, and broadens the scope of what that money can be used to offset.  

A little background 

The R&D Tax Credit was created to encourage and ignite innovation within American businesses. Originally introduced as part of the Economic Recovery Tax Act of 1981, this credit has been extended many times over the years, eventually becoming a permanent tax credit in 2015.

Currently, startups have a unique advantage when it comes to the R&D tax credit. Young companies with less than $5 million in gross receipts and gross receipts for less than 5 years can use the R&D tax credit to offset payroll taxes (primarily FICA) up to $250,000 per year. But only about half of the businesses that qualify actually apply for the credit, oftentimes because they are unaware that they are eligible.

So, what qualifies as research and development? 

Quite a lot, actually. Creating a new formula for your beer? That’s R&D. Manufacturing a new material? That counts too. Developing new e-commerce software? Yep, that’s R&D. There is a four-part test that will generally help you to know if you qualify. Learn more about that here. 

What’s changed with the Inflation Reduction Act? 

This law showed a renewed commitment to innovation and, in particular, to startups and small businesses. There are three main changes to the tax credit that affect these businesses: 

• The credit amount is doubled. 

Yes, you read that right. Doubled. Now, rather than claiming up to $250,000 per year, qualifying startups and small businesses can claim up to $500,000. This can make all of the difference to a small business looking to innovate in their field. 

• The credit can now be applied to Medicare. 

Now, the additional $250,000 can be applied against the employer portion of the Medicare payroll tax liability. This is an expansion from the previous version of the credit which only allowed businesses to offset the Social Security portion of their payroll tax.  

• There is an increase in IRS funding. 

You might be wondering why this matters, or worse, you might assume that it means an increased chance of an audit. The biggest budget increase is to modernize their systems. However, this increase in funding is one more reason to ensure you’re calculating and documenting  your eligible R&D work correctly. Find out more about defensibility.

The bottom line

The Inflation Reduction Act is helping small businesses innovate and advance like never before. Taking advantage of this tax credit can feel overwhelming, but if you select a practitioner with valuable expertise and a proven track record in the R&D arena, you can have peace of mind while getting the credit you deserve for all you do. Clarus R+D is here to help. You deserve to get credit for all you do, and we want to help you get it.

Chris Winslow, CEO of Clarus R+D, spoke with Accounting Today about how the historic Inflation Reduction Act demonstrates continued bipartisan support for research and development in the US.

Small businesses are particularly impacted by this historic bill. By doubling the amount startups can claim of the R&D credit, as well as expanding it to be able to be claimed against both Medicare and FICA payroll taxes, the federal government has shown its commitment to supporting growing American businesses. As small businesses extend their capabilities and invest in their research and developmental work, the opportunity to claim the R&D tax credit becomes increasingly valuable.

The new provisions in the Inflation Reduction Act provide a higher incentive for companies to take advantage of this lucrative credit.

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Our VP of Operations, Monika Diehl, spoke with Law360 about the Inflation Reduction Act and how expanding the R&D tax credit will be especially important to smaller businesses across the country.

The Inflation Reduction Act, signed into law on August 16, 2022, includes significant legislation for various issues. One of the most noteworthy is an increase in the Research and Development Tax Credit.

The credit will see an increase of $250,000, which is double its original amount. Additionally, the Inflation Reduction Act allows the R&D tax credit to be claimed against both Medicare and FICA payroll tax obligations, as opposed to just FICA. Both of these changes significantly benefit companies working to create and improve products or processes.

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The R&D tax credit could be getting a major upgrade. 

Recently, U.S. Rep. Jackie Walorski (R-Ind.) introduced H.R. 8253, the Fostering Innovation and Research to Strengthen Tomorrow (FIRST) Act. If signed into law at the end of this year, the bill would double the research and development tax credit and allow more small businesses and growing startups to take advantage. 

The proposed increase would affect both the traditional and alternative rates that are used in the calculation of the credit for companies who already have a history of doing R&D. For companies taking the credit under the traditional method, the credit would increase from 20% to 40% of their qualifying spend that exceeds a base amount. The alternative credit rate, which uses a simpler formula, would increase from 14% to 28% of qualifying research expenses.

Businesses that have not yet started R&D activities can still benefit from the proposed legislation. Under the simplified credit approach, businesses that did not have qualifying research expenses in each of the three prior years, would see an increase in their credit from 6% from 14% of R&D spend – more than doubling the amount of the benefit available to claim. 

Early stage companies with little or no income can still utilize these credits by taking them against Social Security payroll taxes. The maximum amount that they can claim would also see a substantial increase: from $250,000 to $500,000. 

The R&D tax credit is already a valuable opportunity for companies to get rewarded for driving innovation in the US. The proposed legislation will make this benefit even greater. If your business develops or improves processes or products, talk to one of our experts today to find out what the credit could be worth to you.

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