Premium said:
jefe95 said:
Interesting. Lots of documentation required for R&D credit.
Wouldn't think a lot of mom and pop small business would even have r&d functions and potentially qualifying expenses.
https://www.alliantgroup.com/services/r-d-tax-credit-2/
Seems pretty broad and easy to take advantage of.
Yeah, kinda like any other expense:
"To claim the credit, the taxpayer must contemporaneously evaluate and document their research activities to establish the amount of qualified research expenses paid for each qualified research activity. While taxpayers may estimate some research expenses, they must have a factual basis for the assumptions used to create the estimates.
Examples of such documentation includes:
Payroll records
General ledger expense detail
Project lists
Project notes
Other documents a company produces throughout the regular course of business
These records combined with credible employee testimony can form the basis of a R&D Tax Credit claim…"
Sunray said it best.