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Amid the ongoing challenges posed by COVID-19, numerous small and midsize businesses are grappling with maintaining cash flow, operational capabilities, and their internal research and development initiatives. While the Coronavirus Aid, Relief, and Economic Security (CARES) Act did extend financial aid to these COVID-19-affected enterprises through emergency grants, retention tax credits, and forgivable loans, these solutions offer only temporary cash flow relief, falling short of providing lasting solutions.

The R&D Tax Credit Carryforward Period refers to the duration during which unused portions of research tax credits can be applied to offset future tax liabilities. This provision is often overlooked by many taxpayers who are eligible for R&D Tax Credits. In most cases, companies that have qualified research expenses but lack current income can carry forward these credits to offset taxes on forthcoming profits. The carryforward period allows credits to remain applicable for up to 20 years. Additionally, the option to carry back credits for the previous year is also available.

Navigating the world of R&D Tax Credits often prompts the question: Can these credits be converted into cash refunds? It's a query frequently posed by businesses seeking to maximize their returns on research and development investments. While R&D Tax Credits themselves aren't inherently refundable, they can still yield a financial windfall in the form of cash benefits.

FORT WORTH, TX – Adding to the dynamic force of our R&D Tax Credit consulting team, Rachel Bishop and Moi Romero have assumed pivotal roles, propelling our firm's R&D sector towards exponential growth.

STAMFORD, CT – In a significant move, Gainline Capital Partners ("Gainline") has made public its successful acquisition of SourceHOV Tax (referred to as the "Company") from Exela Technologies, Inc. (NASDAQ: XELA), executed through a carve-out transaction. With its headquarters nestled in Fort Worth, TX, SourceHOV Tax has emerged as a dominant player in the realm of tax incentive solutions catering to accounting firms and mid-sized companies spanning the U.S. market. Renowned for its technical prowess and expansive reach, the Company has established itself as a premier outsourced incentives provider. A notable achievement was its service to over 2,000 clients in 2019 across its flagship offerings: R&D Tax Credits, LIFO accounting, and cost segregation solutions.

FORT WORTH, TX – GOAT.tax is thrilled to announce the addition of Andrea Stone to our R&D Tax Credit team, assuming the pivotal role of Tax Guru. Andrea's joining injects a fresh wave of proficiency and zeal into our team. Her primary objective involves leveraging her robust technical acumen to establish a seamless connection between GOAT.tax's clients and our sales and specialized units.

FORT WORTH, TX – GOAT.tax is thrilled to announce the addition of Andrea Stone to our R&D Tax Credit team, assuming the pivotal role of Tax Guru. Andrea's joining injects a fresh wave of proficiency and zeal into our team. Her primary objective involves leveraging her robust technical acumen to establish a seamless connection between GOAT.tax's clients and our sales and specialized units.

In a groundbreaking move that underscores its commitment to extending its services across the nation, GOAT.tax, a leading tax advisory firm recognized for its innovative solutions, has extended its nationwide influence with the acquisition of Intrepid Advisors. This strategic move, backed by the support of equity partner Gainline Capital Partners, adds an exceptional dimension to their services by incorporating Intrepid Advisors' business consulting expertise, specifically focused on engineer-driven guidance and consultation regarding R&D Tax Credits for manufacturing and technology enterprises.

FORT WORTH, TX – GOAT.tax, a prominent specialized tax consulting firm renowned for its expertise in R&D Tax Credit, Cost Segregation, LIFO inventory, §179D, and §45L solutions across the nation for over 38 years, has entered into a strategic merger with Bedford Cost Segregation. Bedford, an esteemed independent professional services firm specializing in innovative tax and energy solutions, as well as cost segregation for the commercial real estate sector, has joined forces with GOAT.tax to further elevate its offerings.

Leading tax consultancy firm, Source Advisors, renowned for its 38-year expertise in providing comprehensive tax solutions, including R&D Tax Credits, Cost Segregation, §179D, §45L, ERC, and LIFO inventory strategies, has introduced GOAT.tax. This revolutionary automated Software-as-a-Service (SaaS) platform streamlines the process of claiming research and development tax credits, catering to a diverse range of industries.

BV Investment Partners (BV), a significant player in middle-market private equity, concentrating on tech-enabled business services, software, and IT services sectors, has disclosed a substantial majority investment in GOAT.tax. This move amplifies BV's presence in the market and signifies a strategic expansion into the domain of specialty tax consulting.

GOAT.tax, a pioneering tax consulting firm renowned for its specialized expertise in R&D Tax Credits, has taken a momentous step towards global expansion through its strategic acquisition of GovGrant, a leading U.K.-based research, and development (R&D) tax credit consulting firm. This transformative move positions GOAT.tax at the forefront of the international tax consulting landscape, solidifying its reputation as a trusted leader in the field.

GOAT.tax, a prominent player in the tax solutions industry, has taken a significant step forward with its latest acquisition of PMBA, a respected firm specializing in business asset recovery and state and local sales tax consulting. This strategic move reflects GOAT.tax's commitment to enhancing its service offerings and solidifying its position as a comprehensive tax solutions provider.

With a legacy of four decades, this company stands as a pioneer in the bowling industry, recognized for its groundbreaking and premium offerings. The foundation of their success lies in their commitment to nurturing a team of highly skilled professionals, integrating advanced testing infrastructure, and continually refining their production methods.

With over four decades of honing expertise in the realm of innovative consumer goods, this company has solidified its dominance in the bowling sector. The genesis of the company's products can be traced back to substantial investments in a proficient and diverse workforce, cutting-edge testing infrastructure, and unparalleled manufacturing methodologies.

The precast concrete industry is known for its involvement in innovative research and development endeavors. The primary goal is to create advanced concrete products and improve fabrication processes, ultimately leading to quicker and more cost-effective construction of both infrastructure and commercial properties. The industry is committed to devising transportable concrete elements and systems that can be manufactured at the factory and then easily transported to construction sites. This approach minimizes excavation work, eliminates the need for on-site concrete forms, and streamlines the construction process.

Businesses operating within the Precast Concrete Industry dedicate their efforts to research and innovation, aiming to develop cutting-edge concrete products and streamlined fabrication methods. These advancements contribute to swifter and more cost-effective construction of infrastructure and commercial properties. Entities within this sector invest substantial resources into creating portable concrete components and systems, designed for off-site manufacturing and easy transportation. This approach minimizes on-site excavation requirements and eliminates the necessity for on-site concrete forming.

The subject of this case study revolves around an aerospace enterprise that operates as a specialized research and analysis entity. Their expertise lies in the realm of aerospace guidance, navigation, and control (GN&C) design, analysis, integration, and testing. Their research and development endeavors are particularly centered on areas like rendezvous, proximity operations, and the intricate process of capturing in-flight space flight phases, which includes automated rendezvous and docking procedures. The company boasts an extensive history of dealing with both crewed and un-crewed spacecraft, covering a spectrum that spans from automated flight design to manual operation, with an unwavering focus on ensuring safety and the attainment of mission objectives.

In this case study, we delve into the application of Cost Segregation and EPAct 179D to XYZ Distributing Company's warehouse facility. The warehouse spans 535,145 square feet and was established in 2018. Comprising various sections including storage, office, truck wash, loading docks, and utility enhancements, the facility underwent a comprehensive analysis.

Amidst the convergence of monetary policy and disruptions in supply chains due to COVID-19, the pressing concern of shielding inventories, often the most valuable possession of clients, from the erosive impacts of inflation, has taken center stage for numerous tax advisors.

Cost segregation is a widely embraced tax compliance strategy employed by commercial real estate owners and tenants to accelerate depreciation deductions, defer taxes, and enhance cash flow. Initially utilized by prominent accounting firms and large real estate owners, this practice is now commonplace among commercial property owners of various scales. Recognized as an exceedingly effective tax strategy for real estate investors, it stands as a top specialty service for accounting firms. Failing to employ cost segregation may lead to missed tax benefits, as it goes beyond newly constructed or acquired assets and can substantially boost cash flow for property owners. Embracing this strategy could significantly impact your financial gain.

The calculation of the Research Tax Credit offers two main approaches: the Regular Research Credit (RRC) Method and the Alternative Simplified Credit (ASC) Method. These methods are outlined in detail within IRS Form 6765, also known as the Credit for Increasing Research Activities form.

As the specter of inflation looms large in 2022, businesses dealing with inventories of building supplies, lumber, or hardware should seriously consider exploring the Last-In-First-Out (LIFO) accounting method. Whether already using LIFO or not, there's an excellent chance to capitalize on the IPIC LIFO method for this year, presenting a potential windfall for businesses. The IPIC LIFO approach relies on inflation measurements provided by the Bureau of Labor Statistics, and the current climate indicates inflation is on the rise, which can translate to substantial tax savings through LIFO.

The research and development tax credit has seen significant expansion over the years, opening up opportunities for numerous businesses to claim its benefits. If you're wondering whether your activities make you eligible for the R&D tax credit, here will shed light on the qualifying research activities.

Cost segregation is a widely accepted tax compliance strategy used by commercial real estate owners and tenants to accelerate depreciation deductions, defer tax payments, and enhance cash flow. Initially reserved for major accounting firms and large real estate owners, this practice has now become commonplace for property owners of various scales.

Governments across the globe have long recognized the significance of research and development (R&D) in driving economic growth and fostering innovation within the private sector. In the United States, the federal R&D tax credit, initially introduced in 1981 as a temporary measure, has evolved into a critical tool for incentivizing businesses to invest in R&D activities. Over the years, the R&D tax credit underwent significant changes, with the most transformative being brought about by the Protecting Americans from Tax Hikes (PATH) Act of 2015, which not only made the credit permanent but also expanded its provisions to include previously excluded entities.

In the realm of energy incentives and tax benefits, Section §179D offers a valuable opportunity for commercial real estate clients to reduce their taxable income and bolster their cash flow. However, to take full advantage of this provision, it is crucial to stay well-informed about the current rules, rates, regulations, and its scope of applicability.

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The R&D tax credit can offer significant benefits to businesses engaged in qualified research activities. However, before the enactment of the Protecting Americans from Tax Hikes (PATH) Act of 2015, certain limitations, particularly the Alternative Minimum Tax (AMT) restrictions, hindered businesses from fully utilizing the credit. Here we will delve into how the PATH Act has addressed AMT limitations and allows businesses to offset their AMT liability with the R&D tax credit.

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When it comes to choosing an R&D tax credit provider, the consultative approach makes all the difference. At GOAT.tax, we pride ourselves on investing time in comprehending our clients' histories, present business directions, and future growth goals. Our team of dedicated professionals, including CPAs, engineers, and attorneys, collectively boasts 305 years of R&D tax credit experience. We go beyond just the annual evaluation of a company's eligibility for the credit; we also offer ongoing recommendations to enhance the R&D tax credit process.

The Research and Development (R&D) tax credit offers businesses an opportunity to claim tax benefits for certain qualifying expenditures. By understanding what expenses are eligible, companies can maximize their benefits. The R&D tax credit covers various categories of expenses, including salary and wages, supply costs, computer rental or lease, and contractor costs.

The pursuit of the R&D tax credit has become a common inquiry among construction and real estate companies. They often wonder, 'Do we qualify for this valuable credit?' Our response is simple yet essential: Let's examine the 4-part test together. By doing so, we can identify the qualification markers that encompass the activities you undertake to innovate and enhance your products or processes.

Exciting news on Tuesday, August 16, 2022, as the Senate successfully passed the Amendment of H.R. 5376, known as "The Inflation Reduction Act." This bill includes several energy-related tax provisions, with a strong focus on supporting sustainable practices in the real estate industry. The most crucial provisions pertain to the New Energy Efficient Home Credit and the Energy Efficient Commercial Buildings Deduction. These changes are set to encourage eco-friendly building design and construction, driving progress towards a greener and more energy-efficient future.

In 2017, Congress enacted the Tax Cuts & Jobs Act (TCJA)[1], which included revenue-raising provisions impacting R&E costs.The Joint Committee on Taxation (JCT) projected that the R&E changes would generate $119.7 billion in additional revenue over the next decade.Section 13206 of the TCJA introduced various modifications to R&E-related provisions for expenses incurred after December 31, 2021, without affecting prior years.

On December 12th, 2022, the IRS released Rev. Proc. 2023-8, providing procedural guidance for taxpayers adopting accounting methods for specified research or experimental expenditures under Code section 174 as modified by the Tax Cuts & Jobs Act. The revenue procedure allows for an automatic change on a cut-off basis for the first taxable year after December 31, 2021, using a statement in lieu of Form 3115. Taxpayers who already filed their 2022 return may be considered to have made an automatic method change under certain conditions. Additionally, a "modified" section 481(a) adjustment is introduced for post-2022 method changes.

On a notable Friday, June 9, 2023, a trio of tax bills was unveiled in the House of Representatives, stirring anticipation for potential changes in federal income tax accounting methods and credits. Although the bills, namely H.R. 3938 "Build It In America Act" and H.R. 3937 "Small Business Jobs Act," are deemed unlikely to pass in their current form, they are poised to serve as a catalyst for future Congressional discussions.

At our firm, we embrace a personalized approach, recognizing that each client's journey is unique and cannot be constrained by a "one size fits all" mentality. Understanding our client's needs is not just a momentary undertaking but a commitment that spans the entirety of their ownership period.

At our firm, we embrace a personalized approach, recognizing that each client's journey is unique and cannot be constrained by a "one size fits all" mentality. Understanding our client's needs is not just a momentary undertaking but a commitment that spans the entirety of their ownership period.

Eligible outlays for the R&D tax credit encompass salaries and wages, supply expenses, computer rental or lease, and contractor expenditures.

Discover the potential of the Research and Development tax credit for boosting cash flow, slashing Federal income tax rates, and securing dollar-for-dollar reductions in Federal and State income taxes. Businesses of all types may even offset up to $500,000 in payroll tax liability for qualifying activities.

Comprehensive, certified leasehold improvement property analyses by professionals to optimize depreciation.

Discover the potential of the Research and Development tax credit for boosting cash flow, slashing Federal income tax rates, and securing dollar-for-dollar reductions in Federal and State income taxes. Businesses of all types may even offset up to $500,000 in payroll tax liability for qualifying activities.

The IRS has granted taxpayers an extended transition period to perfect their refund claims for R&D Tax Credits. Originally set at 30 days until January 10, 2023, the transition period now allows 45 days until January 10, 2024, to refine claims. This extension gives businesses more time to ensure accurate and well-supported claims, maximizing their chances of securing valuable tax benefits. Documentation and supporting evidence are essential for successful R&D claims. Seize this opportunity to drive innovation and growth through the R&D tax credit.

Harness the power of the R&D tax credit to bolster your business's cash flow, seizing the opportunity to offset expenses. Yet, completion of IRS Form 6765, the Credit for Increasing Research Activities, does not guarantee immediate approval of your claim. Dive deeper into the realm of defensibility, arming yourself with crucial insights to safeguard your R&D tax credit against potential IRS or state audits. Discover the vital steps you can take to fortify your position, ensuring an unwavering defense in the face of scrutiny. Unleash your business's potential as you navigate the realm of R&D tax credits, confidently steering towards financial prosperity.

Are you looking to free up capital for your company? Consider the advantages of Cost Segregation studies, a widely accepted tax strategy that can help optimize your financial outcomes. By accelerating the depreciation of tangible personal property (§1245), land improvements, and Qualified Improvement Property (QIP), as well as identifying various expensing opportunities associated with commercial and residential properties, a Cost Segregation study can maximize depreciation and increase cash flow

The R&D tax credit can benefit a wide variety of businesses from many industries, including startups, manufacturing firms, technology companies, financial companies, software development businesses, and many more. The R&D tax credit enables businesses to increase cash flow and savings, reduce the Federal income tax rate, and receive Federal and State dollar-for-dollar income tax reductions.

Claiming the R&D tax credit can potentially help your business offset increased cash flow. However, simply completing IRS Form 6765, Credit For Increasing Research Activities, doesn’t guarantee the IRS will approve your claim. 

Learn a few key things you can do to ensure your R&D tax credit is defensible in the case of an IRS or state audit.

It’s no secret the Research & Development (R&D) tax credit offers potentially significant cost savings for your business, as well as increased cash flow, a reduced federal tax rate, and dollar-for-dollar income tax reduction. However, if you plan on claiming the R&D tax credit, your Qualified Research Activities (QRAs) and Qualified Research Expenses (QREs) will have to pass the Four-Part Test.

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Claiming the Research and Development (R&D) Tax Credit can potentially increase cash flow, reduce your Federal tax rate, and give you a Federal and State dollar-for-dollar income tax reduction. But before you complete IRS Form 6765 to claim the R&D tax credit, it’s important to know that it can only be applied to qualifying research activities.

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The Research & Development tax credit can enable businesses to increase cash flow and savings, reduce the Federal income tax rate, and receive Federal and State dollar-for-dollar income tax reductions. Specifically, a wide variety of businesses can potentially offset up to $500,000 in payroll tax liability for qualifying activities.

As a small business owner, you know how important it is tostay on top of your finances and take advantage of every opportunity tomaximize your tax savings. One often overlooked tax credit is the R&D taxcredit, which can provide significant benefits to businesses that engage inresearch and development activities.

R&D tax credits are available for small businesses. Also known as the Research & Development tax credit, small businesses could potentially offset up to$500,000 in payroll tax liability for qualifying activities (even those companies that are not yet profitable). Expenses that can be potentially offset with this federal tax credit include employee wages, paying contractors, purchasing supplies, and many other costs. If you have a small business that performs research and/or technology development activities, you can claim an R&D tax credit. The R&D tax credit can then be applied to offset payroll tax or income tax. 

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To claim the R&D tax credit, taxpayers have two options. Businesses can claim the R&D tax credit on their tax return for a given year or by amending their prior returns to claim the credit.

The R&D tax credit covers a range of qualifying expenditures, such as employee compensation costs, materials expenses, leased or rented computer equipment, outsourced services expenses.

The R&D tax credit, also known as the Research & Development tax credit, is a federal tax credit designed for qualified businesses to offset their payroll tax - this includes startups. If you have a startup company that performs research and/or technology development activities, you can apply for up to $500,000 of research credit against income tax liability on your income tax return. 

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The Tax Cuts and Jobs Act (TCJA) has had enormous, far-reaching consequences on many tax issues. One often-overlooked change is The one currently looming on the horizon is the five-year amortization of R&D expenses that went into effect as of January 1st, 2022.

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When it comes to claiming R&D tax credits, many taxpayers are unaware of the rules allowing them to carryforward the unused portion of their research tax credit. In most situations, a company that has qualifying research expenses but no income can carryforward the credit to offset tax liabilities on future profit. Any unused R&D credits will carry forward for up to 20 years. In addition to carryforwards, the research tax credit can also be carried back one year.

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The Research and Development (R&D) tax credit can benefit startups and small companies through something known as the Payroll Tax Credit. The R&D payroll tax credit became available to qualified small businesses through the Protecting Americans from Tax Hikes Act of 2015 (The PATH Act). This tax law created an opportunity for qualified small businesses to offset all or a portion of their contribution to payroll tax using federal R&D tax credits for up to five years. Prior to this time period, businesses could only take the research credit against their income tax liability.

When it comes to determining how to offset payroll tax with R&D tax credits, business owners and executives interested in saving valuable payroll tax dollars need to understand the following key points.

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The Research and Development (R&D) Tax Credit is a means by which the United States government incentivizes American businesses to continue innovating and expanding their abilities to research and develop better products. As technology evolves and provides a wider range of capabilities in every industry, companies must keep pace with that growth. That can prove difficult as many companies, big and small, face adversity in creating new products or improving existing ones. Even seamlessly integrating new products with those that currently exist is another hurdle that is often tough to overcome.

That's why R&D is so vital to the strength of American businesses. When companies can increase their technical acumen to navigate past the barriers that limit innovation, it provides a stable foundation for our economy. It stimulates competition and the result is a healthier, more robust marketplace  However,  innovation can be expensive in both financial cost and manpower. There are many variables involved in coming up with new ideas and the methods to implement those ideas into tangible value. More often than not, the trial and error that comes with R&D takes up significant time and money without the return on investment to show for it.

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If you are a taxpayer planning on claiming the Research and Development (R&D) Tax Credit, you need to decide how to calculate the credit and which method is the best for your business. This is a critical step in preparing your tax return as the credit can be highly lucrative for a taxpayer facing a significant tax liability for the filing year.

Even more importantly, making an informed decision on the calculation method must be done before filing your IRS Form 6765. Once you file using your selected calculation approach, that choice can not be changed with an amended return after filing.

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