Please find some of the most frequently asked questions that we receive. If you have an additional question not listed below, please feel free to contact us.
1. What is R&D for tax purposes?
The guidelines provide that a project which seeks to, for example,
(a) extend overall knowledge or capability in a field of science or technology; or
(b) create a process, material, device, product or service which incorporates or represents an increase in overall knowledge or capability in a field of science or technology; or
(c) make an appreciable improvement to an existing process, material, device, product or service through scientific or technological changes; or
(d) use science or technology to duplicate the effect of an existing process, material, device, product or service in a new or appreciably improved way (e.g. a product which has exactly the same performance characteristics as existing models, but is built in a fundamentally different manner)
will be R&D for tax purposes if the project seeks to achieve an advance in overall knowledge or capability in a field of science or technology, not a company’s own state of knowledge or capability alone.
2. Why should your company conduct an R&D study now?
These programs offers many R&D tax incentives, but chances are you're not taking advantage of
them and getting the dollar for dollar tax credit that you may be eligible to receive.
3. Why TMG for R&D tax credit studies?
The complex nature of the research tax credit regulations makes it difficult for many companies to take advantage of the R&D tax credit.
Procuring these tax benefits requires a profound understanding of the tax code (and associated regulations) and the experience that comes only from conducting hundreds of successful research and development tax credit studies.
4. Do other levels of government offer an R&D tax credit program?
Yes, other levels of government do offer R&D tax credit programs. R&D tax credit rates currently range from a low of 1% to a high of 20%.
5. I've received notice that I'm going to be audited, can you help?
TMG's 20 years of experience in interpreting the R&D tax code qualifies us to assess the audit risk and mitigate your tax exposure.
Contact us for more information. For the US see IRS Tier 1 Directive. USA: During an audit, in 2008 the IRS is required as a TIER 1 to audit all R&D tax claims.
More Questions?
If you have a question that you don't see answered here, please feel free to contact us.
