By: Monika Diehl, VP of Operations
The R&D Tax Credit: Huge Opportunity, Little Risk
If 2020 taught us all one thing, it’s that businesses need to be prepared because things can change quickly. This year, in particular, companies across all industries were challenged as COVID-19 undermined even the most well-developed plans.
But there is good news amongst the 2020 chaos: R&D tax credits.
It’s more important now than ever to look into R&D tax credits to help your business.
The CARES Act made R&D tax credits even more impactful. Businesses can now carry back 2020 losses up to five years and receive tax refunds for previously paid taxes. In addition, your 2020 R&D tax credit can be carried back to 2019 as well as forward 20 years. It’s more important now than ever to look into R&D tax credits to help your business.
Claiming the R&D tax credit has always given companies the opportunity to reinvest back into their businesses. This year may be different, with companies rethinking how to reach goals while facing tough, new challenges. Simply put, the R&D tax credit is one way to get there.
Done the right way, claiming the R&D tax credit can be a simple process that won’t consume much time, is low risk, and definitely worth the effort.
We understand that, on the surface, the R&D tax credit seems risky. However, with the process, documentation, and filing done properly, you can greatly reduce the chance of an IRS audit. In rare instances when an audit has occurred, our team at Clarus R+D has helped customers every step of the way.
At a time when companies are looking for liquidity to either maintain their growth or keep their doors open, help your company take control of this opportunity to generate needed capital and reduce tax liabilities for this year, as well as past and future years.
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.