Tax Incentives Blog

Many businesses are unfamiliar with the numerous professional tax solutions that may help improve their budgets. Most potential savings are available through tax credits and strategies. However, without knowledge of these tax solutions, it becomes more challenging to effectively capture savings.

Learn more about how to optimize your tax strategy so you capture the maximum benefit. When your company is pursuing employment incentives, R&D credits or cost segregation savings, tax experts recommend the following techniques.

Companies that frequently hire new employees over the course of a tax year may be missing out on significant tax savings if they do not submit for employment tax credits. California offers businesses a number of opportunities to earn credits through the California Enterprise Zone Program, the California Competes Tax Credit and the California New Employment Tax Credit.

Instead of disregarding valuable tax credits your business may be eligible to claim, consider implementing new tax savings strategies that benefit your budget. Learn more about how to capture California state employment tax credits.

When your business is faced with an audit, it’s important to remain calm and plan the next step. Whether your R&D tax credit is being examined, or the IRS or state tax authority wishes to know more about another tax incentive claim, you should speak with your audit representative first.

Many outsourced tax consultant firms provide audit representation to clients. Working with your consulting partner is an advantage because your consultant is already aware of the documentation you have filed and your eligibility for specific tax credits based on prior experience with your company.

R&D tax credits are an effective tax solution for businesses seeking to significantly increase savings. Before you begin the credit substantiation process with an outsourced partner, it is critical that you think about what you are looking for in a tax expert who specializes in incentive programs like the R&D tax credit.

Don’t allow roadblocks in your tax strategy to prevent you from claiming valuable tax savings. Implement these solutions to common tax problems.

Many businesses have questions about the best way to increase tax savings when they encounter problems while pursuing R&D credits, employment tax credits and other tax incentives. Lack of documentation and misinformation are common roadblocks.

Cost segregation is a method of increasing tax savings that many businesses don’t take advantage of due to the strategy’s complexity. However, tax services help you improve cash flow with a cost segregation analysis even if you are still unsure of how the process works.

To begin with, it is beneficial for businesses to familiarize themselves with the basics of what a cost segregation study is, how cost segregation increases cash flow and how to select a tax service to assist in implementing this strategy.

One of the most detrimental mistakes businesses make when planning their budgets is assuming they don’t qualify for valuable tax credits such as the WOTC employment incentive, R&D credits or green building incentives.

These tax solutions offer you the opportunity to increase tax savings when your company submits for credits you are eligible to claim. Make sure you understand what qualifies your business for corporate tax incentives by learning about common tax credit misconceptions:

It’s one of the best-kept secrets of the entire Internal Revenue Service (IRS): the research and development (R&D) tax credit. 

While many business owners and CPAs have simply never heard of the R&D tax credit, it is a cost-savings opportunity you don’t want to miss, especially because most companies vastly underestimate – or entirely ignore – their true amount of research and development. 

A research and development (R&D) audit is an examination of your company’s compliance with the relevant R&D tax credit legislation. The audit consists of a thorough review of your claim(s), from a scientific/technological and a financial/tax technical perspective. 

The likelihood of enduring an R&D audit is a question of “when” and not “if.” That’s why it’s incredibly important to properly prepare for your R&D tax credit claims and have the right documentation ready in the event of an audit. 

Filing taxes is not a task associated with ease or enjoyment. Understandably, companies seeking to take advantage of R&D tax incentives may be tempted to put off claiming R&D credits until another year due to the time and energy proper documentation requires. 

It is in every company’s best interest, however, to claim credits sooner rather than later so you have as many records from past years as possible. It should be noted that these claims must be in accordance with the IRS audit technique guide.