Dirty Dozen #7: Misuse of Business Credits

Each year, the IRS publishes a Dirty Dozen list of common schemes taxpayers may encounter. Coming in at #7 on this year’s list, the IRS continues to see significant misuse of the research credit. Meant to provide an incentive for American industry to invest in research and experimentation, this credit has legitimate uses but there are specific criteria to qualify.

Clarus specializes in helping startups with the R&D tax credit. We simplify the process while maximizing the financial benefit. Most importantly, we do it right. We generate the proper documentation and partner with your tax preparer and payroll company to check all the boxes.

IRS Dirty Dozen 2018

1. Phishing
2. Phone Scams
3. Identity Theft
4. Return Preparer Fraud
5. Fake Charities
6. Inflated Refund Claims
7. Excessive Claims for Business Credits
8. Falsely Padding Deductions on Returns
9. Falsifying Income to Claim Credits
10. Abusive Tax Shelters
11. Frivolous Tax Arguments
12. Offshore Tax Avoidance

For more detail on this year’s Dirty Dozen, head over to the IRS newsroom.