Common Myths

The following are some common objections we hear when sharing details about the R&E tax credit...
 

Myth #1
Our business is simple and not ‘high-tech.’ We probably don’t qualify.

If you are developing new processes or products, or improving existing processes or products, you qualify.  If you have devoted resources to evaluating a new technology, investigating new materials, improving machinery or tools, developing and implementing lean manufacturing techniques or improving the environmental impact of your processes, you may be eligible.

 

Myth #2
We are a small company. This credit is just for big business.

There is no size requirement for the R&E credit. Both large and small companies are potential candidates for the credit. If you have new or improved processes or products, you may be eligible for the credit.

 

Myth #3
We’ll just tell our CPA to file the right form at the end of the year to receive the credit.

Successfully claiming the R&E tax credits to which you are entitled is more complicated than just filing the appropriate form. Highly specialized knowledge of current and historical requirements, along with proven technical report writing, is necessary to substantiate and defend your claim. MPP&W has studied the intricacies of IRC Section 41 and have developed the technical knowledge necessary to provide a solid basis for receiving the credit.

 

Myth #4
Our CPA looked into this a few years ago. We didn’t qualify.

Recent legislation has lowered the IRS “discovery” hurdle, so many additional taxpayers can begin receiving these credits. In fact, unclaimed credits from prior years can also be recovered today under the current legislation.

 

Myth #5
I’m not sure the credit is worth the time and energy.

The credit is worth the time and energy. Our process includes a plant tour and interviews with your key management. These are both necessary to substantiate your credit. However, because of our experience, we have streamlined our process to minimize disruption of your operations while allowing you to receive the full credit to which you are entitled.  Our interviews are designed to capture all eligible costs and appropriate documentation in the most efficient and direct way possible.

For more details, call 866.961.EDGE(3343).