RESEARCH CREDIT - STATE AND FEDERAL

You can rest assured that ThreeFive will file complete and accurate claims for refunds or credits owed to your company. Freeing you up to do what you do best is what we do. Quality is job one.

Opportunity: No lab coats required! Any company with new or improved products/processes, software, or research expenses on the books may qualify. Not sure if you qualify? ThreeFive professionals know the law and how to apply it to your situation. Establishing the correct amount of qualified research expense (“QRE”) is a challenging and time consuming task. To determine whether research activities and associated wages qualify for the credit, taxpayers may be required to evaluate hundreds of cost centers or projects involving hundreds, or even thousands, of employees. IRS-authorized statistical sampling techniques may allow taxpayers to substantially reduce this burden. A statistical sampling expert is on the ThreeFive team!

Implementation: Research expenses can be reviewed annually, or up to 3 years in a single sample. The process begins with interviews of key individuals most familiar with the activities of the organization to establish qualification. The next step involves quantification, which can be accomplished through further interviews or samples of projects or employees. A list of projects or employees gets analyzed and stratified to obtain a “sample pull list” for ThreeFive auditors to further evaluate. Questionnaires are usually circulated amongst the selected employees for their input. A questionnaire review is performed by a team of ThreeFive specialists and employee interviews are used only as a last resort to capture the information pertinent to the determination of the appropriate credit amount.

Result: Upon completion of a research credit study, our clients will benefit from tax savings and a lower effective tax rate. Our billing is based on that result.

Download the R&D FlyerRead more about R&D Credits including a simple four part test that is the first step to finding out if you may qualify.


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