As everyone is aware, over the past month we have been confronted with an extremely complicated set of circumstances. In addition to the effect the coronavirus has had on those physically affected, the policies surrounding containment have dramatically affected the economy. As a direct result of policy, many of our clients have been subjected to finding creative ways to keep their businesses alive. Most of our clients are relying upon government intervention to provide grants or loans. Although these programs have proven helpful to some, the programs require newly passed legislation and continue to have limited funding.
Since the beginning of the social-distancing programs, Apex has been speaking with prospects about how they can use the Research and Development Tax Credit as a resource to supplement newly enacted legislation, including the CARES Act programs. Unlike the new legislation, the best part about the R&D Credit is that it is predictable. Over the past week, Apex has signed engagement letters with four new clients who stand to recover hundreds of thousands of dollars each. Two of the companies will likely exceed a million dollars in benefits. Keep in mind, this money is in addition to the CARES Act programs for which they qualify. The benefits of the R&D Credit will be recovered in cash refunds from amending prior year tax returns, and the clients will use the remaining benefits against the 2019 income tax liabilities.
This newsletter is designed to serve as a reminder that this R&D Credit exists, and that it is a valuable tool for you to help keep your clients stay in business. An analysis and free preliminary assessment can be done quickly, and studies are often completed in just over a month. Lastly, because times are so tough, Apex is in no way suggesting you should use the R&D Credit should be used to replace any other forms of relief that are provided. Right now every bit of help is necessary.
Apex is a valuable resource for your firm because utilize 20 years of experience, and a team of professionals that includes attorneys and CPAs, as well as professionals who have experience working at the IRS as agents and attorneys. All of Apex’s studies involve a thorough review of data points and contract analysis when applicable.
It must be noted, this article is intended to be brief; therefore, it is not all encompassing. To discuss the topic in more detail, or to discuss other related topics, please call the offices of Apex Advisors, or David Porada directly at 248.259.7421.