R&D Tax Credits for Main Street
You don’t have to send a rocket to Mars to qualify for the Research & Development tax credit. There are thousands of businesses that claim this credit annually whose innovations you’ve never heard of and thousands more who haven’t even reached the finish line. If you’re worried about even asking the question of whether your business qualifies…STOP IT! If you believe your business has (or is developing) a novel product, process, formula or software, it’s worth a chat.
Dark Horse Believes...
...determining if you should qualify should be easy
We can let you know in relatively short order whether your business qualifies in a judgment-free way that won’t leave you feeling embarrassed for asking.
If you can answer yes to at least 3 of the below questions, we should talk.
Are you developing or improving a product, process, formula, or software?
Is your work within one of the
Commonly Eligible Industries?
Are you asking questions like “Can we develop it?” or “How do we develop it?”
Are you systematically evaluating one or more alternatives?
...your R&D tax credit should be defensible
Dark Horse works with a team of R&D credit specialists who create a robust tax credit study that dots every “i” and crosses every “t” should the IRS ever want to take a closer look. The tax credit mills that crank out a high volume of credits care very little about whether the credit can be substantiated under audit because they’ll likely have wound down their business by the time they would have to face the music.
...you should know which expenses qualify in real-time
It’s difficult to forecast or create budgets when you don’t know the tax impact of your budgeted spend. Dark Horse will help you identify which expenses qualify, and since we do your bookkeeping, we can create clear accounting that shows you the costs alongside the projected R&D tax credit amount.
...missing out on the R&D tax credit is a shame.
If you wait too long to claim the R&D tax credit, you may not be able to claim it at all. The IRS limits the amount of time you have to amend prior year tax returns in order to claim the credit. So, if you’re waiting to claim the credit because you don’t think you can utilize it right now, we urge you to reconsider.
For most companies, the credit is worth 7-10% of qualified research expenditures. It’s a dollar-for-dollar credit against taxes owed, which can dramatically lower your effective tax rate. Plus, it can be carried back one tax year and carried forward for 20 years.
Depending on the particulars of your business and personal tax situation, the tax credit can be used to offset:
Income taxes for a C Corporation
Income taxes for an individual owner of a Partnership or S Corporation
The employer portion of FICA taxes
The employer portion of Social Security and Medicare tax
3 Steps to Claim Your R&D Credit
STEP ONE
We'll help you determine if your business qualifies for the Research & Development Tax Credit
STEP TWO
If you qualify, we’ll coordinate with our R&D credit team to collect all information needed to claim the credit
STEP THREE
We'll claim the credit on your behalf, ensuring the correct elections are made to maximize the credit
Without Dark Horse
In Leon Max v. Commissioner, the tax court ruled rather unfavorably to the taxpayer...
#1
Nearly $1MM in R&D tax credits disallowed.
#2
Taxpayer paid penalties and interest on the tax assessed, as well as the costs incurred to litigate.
Common solutions to common problems won't qualify. Competent professionals should have intervened on behalf of the taxpayer.
With Dark Horse
An online supplement business in California that is consistently investing a significant amount in the development of their products.
2020
Fed $44,475 CA $33,356
Credits from W2 and Contractor Wages
2021
Fed $43,405 CA $30,874
Credits from W2 and Contractor Wages
2022
Fed $39,904 CA $29,928
Credits from W2 and Contractor Wages
Your R&D Tax Credit Experts
Suzi Drennen
Principal
Jordan Keller
Principal
John Warner
Principal
Teddy Mizerak
Principal
James Larsen
Principal
Craig Trimble
Principal
Adam Ripperdan
Principal
Tim McLain
Principal
Megan Durst
Principal
Mike Madden
Principal
Matthew Lynch
Principal
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I have used James Larsen as my CPA for many years and am confident in his work ethic and tax knowledge.
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