For decades, companies have been trying to design software that could accurately and completely capture a company’s R&D tax credits. The main reason that companies have been unsuccessful over the years is because the R&D tax credit rules are interpretive
The R&D tax credit can help companies generate much needed cash flow by offsetting taxes owedor paid.In many cases, the cash generated is used by companies to grow and remain competitive byfunding additional research activities perhapsleading to expanded manufacturing lines or
Internal Use Software (IUS) includes software applications, operating systems and related resources used torun a business and serve customers. Many small, midsized and even larger U.S. companies currently do nottake advantage of Federal & State tax credits available for IUS research and development (R&D)
We are currently in unprecedented times, with regular routines and business and social norms being disrupted in attempts to minimize the impact of COVID-19. The disruption is not only limited to individuals or even businesses but also is affecting governmental agencies, as seen most clearly by the impact on the IRS.
In a recent opinion, the US Tax Court rebuffed another attempt by the IRS to deny the R&D credit to taxpayers. By granting summary judgment to the taxpayer, the Court upheld the string of cases that define what funded research means.
Many people think that R&D tax credits only apply to companies that require lab coats to be worn at the office. But the definition has evolved greatly over the years to include not only companies that manufacture and develop software,but companies in various