FAQs
To clear up any confusion, we’re debunking the top misconceptions of the R&D tax credit. Check out the myths versus facts below.
Who is eligible for the R&D tax credit?
Any company that designs, conducts qualified research, or manufactures products within the U.S. is eligible for the R&D Tax Credit. Qualified research entails efforts to develop new or improved products, processes, software, techniques, or formulas. This work must be carried out by U.S. employees, though contractors may also be involved.
Will an R&D tax credit increase my audit risk?
Claiming an R&D Credit on your original tax return, even if filed with an extension, does not automatically trigger an IRS audit. However, as with any part of your tax return, the IRS may choose to review your Research Credit calculation and documentation, regardless of the reason your return was selected for examination. Therefore, it’s prudent to carefully consider your options when calculating and claiming your Research Credit.
Can I calculate and submit an R&D tax credit on my own?
Certainly. However, the rules can be complex, and meeting the requirements for supporting and defending your calculations can be daunting. If you follow the guidelines and understand the audit procedures, you can calculate and submit your R&D Credit independently.
After I subscribe, what is the next step?
Once logged in, we’ll walk you through the rules and requirements for completing your calculation. Afterward, you’ll be able to run an R&D tax credit estimate and decide how you’d like to proceed with the process.
What are the benefits of working with Titan Armor?
We offer the information and education you need to assess how to maximize your research credit opportunities. Titan Armor is part of a nationwide network of CPAs who have secured tens of millions in R&D tax credits for businesses.
With Titan Armor, you have the control to calculate and claim your research credit. You can choose the level of involvement and audit defensibility that aligns with your comfort level.
What are the common industries that benefit from the R&D tax credit?
The R&D tax credit is available to all industries that design or produce a product on US soil. However, the industries that generally benefit the most from the R&D tax credit are manufacturers, engineering/architectural design firms, and software developers.
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