Claiming the R&D Tax Credit
Claiming the R&D Tax Credit can be a complex and challenging process. With over fifteen years executing successful studies for deserving businesses, FTS Group makes it simple for you.
As prescribed in Section 41 of the Unites States tax code, this incentive may be claimed by taxpaying businesses that develop, design, or improve products, processes, formulas, software and more. A taxpayer can claim an R&D tax credit on their timely filed tax return and can also amend prior returns to claim the credit. For amended tax returns, this can typically be claimed for the previous three years. The credit is claimed by filing IRS Form 6765, although amended returns require some additional information. Many states also offer this own version of the credit as well.
The R&D Tax Credit
Four Part Test
Documentation is extremely important for both claiming and defending any R&D tax credit claims. This includes not only meeting the four-part test, but also having the right substantiation to support the claim. The four-part test for qualification of the R&D credit is shown below:
Qualifying Research Activity Examples
Design and development of new or improved software applications
Development of tooling, fixtures, and dies
Building and testing prototypes
Development of production processes and equipment
Evaluation and testing of new materials for product development
Development of conceptual designs and defining project requirements
Qualifying Expense Examples
Salary & Wages
Supply Costs
Cloud Computing
3rd Party Contractors
Supporting Document Examples
Payroll Records
General Ledger Expense Detail
Project Lists
Project Notes
Case Studies
Our Process
Step 1 – Initial consultation. Meet with Mitch to determine if you’re a good candidate for the R&D credit. In just minutes, we can provide an estimate of potentially available credits.
Step 2 – Estimate of credits. Our team will gather some initial information and data to provide an estimate of credits available. There is no cost to you if no credits are available.
Step 3 – Substantiation. Our team will gather the documentation needed to properly substantiate your credits. We will interview your team and review any contracts needed to claim the credit.
Step 4 – Claim the credit. We will provide you and your CPA with everything needed to claim the credit. We work with you through the entire process.
Step 5 – Summary report. We will provide a final deliverable detailing the credits claimed and their substantiation. This package provides the peace of mind needed to properly claim the credits.
Step 6 – Audit support and representation. While audits are rare when working with FTS Group, should you receive any questions about the credits, we are here to help through the entire process.
Let’s talk.
Our mission is to get money back into the hands of growing businesses. Speak with our founder and principal today.
Why work with FTS Group
1:1 Attention
You’ll work directly with our founder and principal, tax attorney Mitch Feldman. Mitch has over 15 years of industry experience and has saved hundreds of clients millions in tax credits. No sales team or inexperienced project managers here — which means impeccable work, minimal disruption to you and your team, and nothing left on the table. Meet Mitch.
Transparent Fees
This credit is yours. Don’t get trapped with confusing fees or hidden costs. We are upfront and direct with our pricing. No cost if there are no credits!
Complete Substantiation
Proper substantiation and documentation is the name of the game. Working with a team that knows exactly what is required means peace of mind for you.