Is It Too Late to Claim the R&D Credit?
This year’s tax deadlines have come and gone.
You and your team have been busy innovating, making it easy to overlook claiming your R&D tax credit. Either due to lack of awareness, uncertainty over eligibility, or being dumbfounded by the cost of submitting your claim, you’re now worried about losing thousands of dollars that are rightfully yours.
Don’t despair; your opportunity to take advantage of this benefit has not disappeared. Claims can still be filed via an amended return.
When to claim and amend
Standard procedure for claiming an R&D tax credit is to complete the required documentation and submit form 6765 alongside your company’s original filing. It’s not uncommon for companies to either forget – or simply be unaware of – the need to include this form.
Generally, you have at least three years from the date you file your tax return (or from the statutory due date if the return is filed early) to amend your return to correct any errors or include any missing items. Additionally, this three year period can be further extended if you incur net operating losses, make subsequent tax payments, or voluntarily extend the time to assess deficiencies.
Strategically, innovative companies that claim the credit every year will realize the highest return on their investment. Even if unutilized in a given tax year, credits can be carried forward up to 20 years, and, in some cases, recorded as deferred tax assets on your balance sheet.
It’s (almost) never too late to claim
Although it’s too late to claim your 2019 research credit as a payroll tax offset, companies can amend their return to monetize it as an income tax credit – and can even consider performing a ‘look back’ to capture up to three years of unclaimed tax credits.
To find out more about R&D tax credits, or to discuss whether your business qualifies, schedule a free consultation with Clarus R+D. Our technology-driven solution empowers companies to fuel their growth with America’s largest tax incentive.