McGuire Sponsel worked with a financial software company to perform an R&D Tax Credit study to maximize benefit.
In this episode, host TJ Sponsel and first-time guest Garrett Duffy delve into the technical distinctions between Sections 174 and 41 of the tax code.
After months of delays in the U.S. Senate, Senate Majority Leader Chuck Schumer (D-NY) plans to take H.R. 7024 to the Senate floor for a vote before the August recess.
In this episode, host TJ Sponsel and guest Audrey Carnall discuss the intricacies of R&D tax credit documentation.
McGuire Sponsel worked with a technology development company to perform an R&D Tax Credit study to maximize benefit.
In the United States, there are numerous innovation-driven tax incentives. The Research and Development (R&D) Tax Credit is a crucial tool for businesses seeking to offset the costs associated with developing new products or processes. Regardless of the industry, artificial intelligence (AI) is a concept that every business is looking to leverage.
Since January 10, 2022, taxpayers filing amended tax returns with claims for refund related to the R&D Tax Credit have been required to include supplemental information with the return.
Since January 10, 2022, taxpayers filing amended tax returns with claims for refund related to the R&D Tax Credit have been required to include supplemental information with the return.
In today’s rapidly evolving technological landscape, Artificial Intelligence (AI) stands out as one of the most transformative innovations of the 21st century. From enhancing efficiency in various industries to revolutionizing healthcare and driving autonomous vehicles, AI has the potential to reshape the way we live and work.
In this episode, host TJ Sponsel is joined by guest Richie Abedin, a Senior Tax Consultant specializing in R&D tax credits for technology-minded clients. They discuss the intricacies of the R&D tax credit, especially as it relates to artificial intelligence (AI) and other emerging technologies.
Client Snapshot
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Financial Software CompanyTexas
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Company Profile
Communications and Financial Software Platform
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Project Type
Current Year Study
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Project Objective
Tax Credit Realization
Financial Software Company
Client Profile
The client is a financial software company headquartered in Dallas, Texas, with employees located remotely across the United States. Founded originally as a communication platform in 1978, the company has expanded through multiple acquisitions over the years. Today, they employ approximately 45 people.
Process
As a current year client who had previously claimed the R&D tax credit, our R&D Tax Credits team followed an established process updated for the latest tax year. The team conducted remote fieldwork to comprehensively capture information about the company’s qualified research activities and expenses. Additionally, the client requested an accelerated timeline to receive the credit calculation earlier than their extension filing deadline for tax planning purposes. Adhering to the client’s mid-March deadline was the primary challenge; however, our team streamlined their workflow to meet this accelerated timeline.
Study Results
For the 2023 tax year, we calculated $2,155,330 in qualified research expenditures related to the company’s financial software development activities. This entitled them to a $113,627 effective federal R&D Tax Credit.
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$2,155,330
2023 Total Federal QREs
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$113,627
2023 Federal R&D Credit