Every year, many US companies fail to claim valuable government tax incentives, hindering their growth and potential. This is often due to incomplete analysis by generalist tax preparers or misconceptions about qualifying activities and documentation.
At KC&A, we understand this issue and will ensure you avoid these common mistakes.
Most accountants focus on completing tax returns quickly and accurately, without a strong incentive to maximize tax credits and incentives. They may lack the expertise to accurately calculate and report these benefits, leading to lower profit margins or mistakes.
While some tax professionals may recommend basic tax incentives, they often overlook more complex ones or fail to provide the necessary documentation. This caution is driven by the fear of audits or penalties for inaccuracies, which can result in additional taxes owed by clients or harm to their own tax practice.
Penalties, such as accuracy-related penalties and civil fraud penalties, can significantly increase a taxpayer’s liability if they are found liable. Tax preparers are also subject to penalties for unreasonable positions or failing to fulfill certain duties.
Despite the risks, there are numerous activities and expenses that qualify for federal and state tax incentives. For open tax years, it may be possible to amend prior returns and claim cash refunds for missed incentives. These tax credits can greatly benefit businesses and shareholders alike.
At KC&A, we specialize in identifying and quantifying tax benefits for specific industries, allowing us to serve our clients with tailored expertise.
The following list are industries eligible for valuable federal and State R&D credits:
Aerospace,
Architecture,
Engineering,
Software Development,
Manufacturing,
Cannabis Affiliated Companies,
Biotechnology,
Cosmetics,
Breweries, Distilleries, Wineries,
Telecommunications,
Information Technology (“IT”), and more!
Contact KC&A Today for your free R&D credit assessment and valuation
