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As a CPA or tax/financial professional, you are a trusted advisor and partner for each client you serve. As a trusted partner, you are expected to possess crucial skills that can make or break a business’s ability to succeed. Companies of all shapes and sizes look to you for guidance in an everchanging accounting world, and you are expected to deliver in a way that is ethical, accurate, and informed. How does the CARES Act affect me/my business

Oftentimes, these expectations are too grandiose for any single professional to meet by themselves, so you turn to co-workers and trusted mentors for assistance. Sometimes, this means reaching outside your own four walls. One realm of tax often left to specialists is the R&D Tax Credit, and rightfully so! the complexities of the tax code and regulations, along with the awareness of current and historical case law make it difficult and timely to accurately assess and calculate the level of your client’s eligibility. BUT that does not mean you cannot be a valuable asset in identifying this benefit for your clients.

A high-level understanding of your client’s operations and common activities associated with the R&D credit can help you identify an eligible client, proving your weight in gold as a partner and confidant! the purpose of this article is to help you quickly identify clients that are highly likely to qualify for the lucrative R&D tax credit. Just answer these two questions:

Does your client work within the following industries?
  • Manufacturing
  • Engineering
  • Architecture
  • Design/Build Construction
  • Software
  • Agriculture
  • Oil & Gas
  • Food and Beverage
Does your client do any of the following?
  • Develop or design new products, software, or processes;
  • Enhance or improve existing products, software, or processes;
  • Work within modeling software such as Solidworks, AutoCAD, BIM, etc;
  • Test or evaluate products/processes; or
  • Manufacture, assemble, construct new or improved products.

Don’t know the answer to these questions? Check out their website and/or LinkedIn. This is often where we look first to get an understanding of a company’s operations and the likelihood to qualify.

The purpose of this article is brevity and high-level assessment of your client’s R&D Tax Credit eligibility, however, if you would like to learn more visit our R&D tax credit webpage.

The R&D credit is capable of saving your client $100s of thousands in tax dollars on a year to year basis. In Q1 & Q2 of 2020, Calvetti Ferguson helped dozens of companies save over six-figures in income tax. If you answered yes to either or both of the above questions, contact us and let us help you calculate and substantiate your client’s R&D claim.

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Calvetti Ferguson works with middle-market companies, private equity firms, and high-net-worth individuals nationwide. Regardless of the complexity of the compliance, assurance, advisory, or accounting need, our team is ready to help you. Please complete the form below, and we will follow up with you shortly.