By: Jeff Haskett, Co-founder
5 Questions to Ask Your CPA
More than half of our customers have never claimed the R&D tax credit before working with us. Why do so many companies miss out? For a majority, we believe a thorough R&D tax study is outside the scope of their CPA’s service offerings.
Start by asking your CPA the following five questions. Then bring us into the conversation to talk about how Clarus R+D can work as an extension of their business and your accounting department. The end result: a streamlined process, IRS compliance, and the maximum financial benefit for you.
1. Do I qualify for the federal R&D tax credit?
At Clarus R+D, we talk to eligible companies every day that miss this credit. Some don’t know the rules have changed. Others think (incorrectly) they don’t qualify either because they don’t pay income tax, don’t have enough employees, or don’t spend enough money.
2. Have I ever claimed it in the past? Why not?
Many companies have been told it’s too expensive or cumbersome. With Clarus R+D, it’s not! Our tech-enabled solution and creative pricing model are designed to lower your cost and maximize your reward.
3. How can I maximize my benefit?
Many credits are understated when calculated by non-specialists. Expenses that qualify get left out because innovation spending is more inclusive than what is typically booked as R&D.
4. How do I know I’m following the rules?
Coming in at #7 on this year’s Dirty Dozen list, the IRS continues to see significant misuse of the research credit. Clarus R+D specializes in helping companies do it right, generating all the documentation required by the IRS, including qualification and calculation reports.
5. How can I make sure my benefit is monetized?
The R&D tax credit can be used to offset:
- Income taxes if you are in a taxable position.
- Alternative Minimum Tax (AMT) if you have less than $50 million in average revenue for the 3 preceding years from the tax year, and you owe AMT in the current year.
- Employer portion of Social Security taxes up to $250,000 each year, allowing qualified small businesses to receive the benefit regardless of profitability. Startups need to ensure their payroll providers process it correctly. Many do not! Clarus R+D integrates with payroll providers for easy and accurate monetization of your benefit.
At Clarus R+D, we’re on a mission to make this significant financial incentive accessible to all qualified companies. Connect with our team of tax credit experts for a free consultation to learn more.
ABOUT CLARUS R+DWith custom software backed by a team of tax experts, Clarus R+D specializes in tax credits for growth businesses. Our technology-driven solution simplifies the process, maximizes benefit, and ensures compliance. We partner with accounting firms, financial advisors, investors, payroll providers, and more.