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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.
How to claim R&D tax credit
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. Taxpayers can file amended tax returns for up to three years prior to the current year. They can claim the credit on their tax return for the year in which the qualified expenses were paid or incurred. To claim the credit, the taxpayer needs to fill out IRS Form 6765, which is the Credit for Increasing Research Activities, for the year in which the qualified expenses were paid or incurred.
How to calculate R&D tax credit
GOAT.tax offers two methods for calculating the R&D tax credit - the Regular Credit (RC) Method and the Alternative Simplified Credit (ASC) Method. At GOAT.tax, taxpayers can choose the most preferable calculation method each year, and our team of experts can help determine the most advantageous calculation method for your business.
Businesses using the RC method should complete Section A of IRS Form 6765. Section B is designated for businesses that choose to use the ASC calculation method. Section C requires additional documentation related to your business structure and R&D activities. Section D is mandatory for small businesses that have elected to apply the payroll tax credit.
How can GOAT.tax assist your business
At GOAT.tax, our focus is on assisting businesses in claiming the R&D tax credit through expert guidance and support. With a team of more than 50 R&D tax professionals who have accumulated over 350 years of experience in streamlining the R&D tax credit process, we are well-equipped to help businesses efficiently claim the credit and maximize their benefits. Their advanced platform simplifies the complexities of claiming the tax credit, allowing businesses to streamline and automate the R&D credit process.
Automated Software vs. Traditional R&D Tax Credit Consulting
GOAT.tax was created to educate businesses on the R&D tax credit and help those who qualify successfully claim it on their own. Our nationwide team has over 350 years of collective R&D tax credit experience, and our mission is to take the guesswork out of this credit so you can focus on your core business.
The Three Types of Research and Development
Businesses should consider claiming the Research and Development tax credit for various reasons, but eligibility must be determined and three types of R&D align with the business's nature.
Common Challenges When Claiming R&D Tax Credits
Although claiming this credit can offer considerable benefits for companies engaged in R&D efforts, the process can be challenging.