Research & Development Tax
R&D Compensation Consultants – IRS Audit Representation
Longnecker & Associates has built a strong reputation as the go-to firm for strategically determining reasonable compensation levels for application toward the research and development tax credit, including IRS Form 7675 and IRS section 41. Our proactive approach to this process positions companies, their CPAs and the tax firms assisting them to mitigate audit and litigation risk, while maximizing tax credits.
Our consultants are experts in qualified R&D tax credit calculations. Contact L&A to speak with a qualified R and D consultant if you want to maximize your payroll and compensation deductions or need an expert opinion to help your company or organization during an IRS audit.
The Credit Calculation Process
By working with dozens of companies on R&D tax issues and assisting with more than 100 IRS-related situations, L&A has developed a proven process to determine reasonable compensation levels. Since 2014, our process has helped our R&D tax clients save millions of dollars.
R&D tax credits are IRS expenses a company can deduct from tax liability to recoup increases in research expenditures.
Our R&D Tax Credit Calculation & Analysis Includes:
- Interacting with the company and the CPAs assisting them.
- Interviewing company management to best understand the company and each person’s role in value creation.
- Determining comparables to executives or their teams and understanding that titles never tell the whole story.
- Assessing not only current compensation, but also historical compensation under IRC162, and using our expert knowledge of IRS codes to benefit our clients.
- Factoring in performance when it is greater than that of the peers.
- Identifying atypical forms of compensation that are usually over-looked.
- Providing reasonable tax credit applicable compensation to CPAs and tax firms for inclusion in tax return.
Research & Development Tax Credit Limitations
As with every tax credit opportunity, there are limitations governing the amount an organization can credit for research. There are also limits on the what can be expensed as research or development costs. The IRS rules regarding R&D expenses has changed dramatically over the last two decades, and continues to evolve. You need experienced R&D compensation experts on your side – get in touch with our consulting firm to see what the next steps are.
Proven Tax Credit Results
At L&A, we fully understand the one-dimensional agent playbook as it relates to compensation, and we use our process to position clients for the best possible outcome. The result is significant tax savings for our clients. L&A has never lost an IRS battle and has saved clients tens of millions in taxes over the past 30 years. Give us a call to learn how we can determine qualified income for R&D tax issues.