The TaxOpsMin staff includes some of the industry's most experienced CPA's from Big Four firms and has generated countless millions of dollars in income and transactional tax credits and deductions for our clients.
We perform studies and special projects in significant tax saving and cost recovery areas. Our flagship Research and Development (R&D) studies:
- Drive maximum results with minimum disruption to operations
- Unlock access to financing you may not know is available to fund growth and further investment.
We are often referred to businesses by other CPA firms to perform tax minimization work in specialty areas where the referring firms do not have the expertise.
Unlock the financing potential of Research and Development (R&D) credits. These dollar-for-dollar federal credits are available to taxpayers who perform qualified research; additional state tax credits may be available. Federal research tax credits offset more than $7.5 billion in R&D expenses at U.S. companies annually. The credit can return 4 to 6.5 cents for every dollar spent in qualified expenses and there is no per-company cap on U.S. research credits. The rules, exceptions and contemporaneous documentation requirements for claiming research credits is complex. TaxOps Minimization has decades of experience preparing audit-ready documentation, conducting interviews, calculating credits, and defending federal and state research claims. Our team has successfully worked on credit studies with Fortune 100 companies on down to companies with as few as six full-time equivalent engineers. Let us put our expertise to work for you, reducing the cost of labor-intensive R&D investment with research tax credits.
Real-Time R&D Process Option Available
Manufacturers, software developers, energy producers (including oil and gas, electricity and natural gas), construction companies, engineering or architectural service providers, potable water producers, and food growers are eligible to claim an additional deduction of 9 percent (as of 2010) if they have taxable income. A domestic production activity deduction study reviews taxpayer operations to determine if exceptions apply prior to calculating an amount for the deduction.
At one time or another, most companies are faced with having to work with the Internal Revenue Service and other state revenue agents to settle tax issues in dispute. We work with national and local tax authorities to develop an audit plan that mitigates operating disruptions and frustration associated with the audit process. We have years of experience working with IRS field units and national staff on audits, pre-filing agreements and appeals cases. Let us assist you in working with tax authorities on settling outstanding tax issues.
The Internal Revenue Service requires taxpayers to capitalize overhead costs associated with inventory, which increases taxable income. There are several different methods to determine what to include in the calculation. Due to the complexity of the calculation, many taxpayers include costs that should be excluded or use less-than-optimal calculation methods, thus increasing the capitalization. Through a uniform capitalization study, costs are analyzed and the optimal calculation method is selected for maximum tax savings.
The Internal Revenue Code provides taxpayers with a deduction for food, beverages, or entertainment expenditures that may be limited to 50 percent of the amount that would otherwise be allowable as a deduction to the taxpayer. The full extent of the deduction may go under claimed because of various interpretations of regulatory language. In addition, taxpayers that take the annual meals and entertainment line item and divide it by two to derive an M-1 adjustment may be exposing their company to understatement penalties if exceptions are not taken into account.
A meals and entertainment study analyzes taxpayer expenses to ensure that only appropriate expenses are limited. Statistical sampling is used to perform an efficient analysis. The TaxOpsMin team also provides instruction to accounts payable personnel on proper coding for greater accuracy in future tax periods.
There are numerous federal and state credits available on an ongoing or limited-time basis. Each have qualifications that must be met and exceptions that apply. TaxOpsMin can assist in qualifying and determining these credits, which include the following.
Several federal credits related to the creation of renewable energy sources available; state credits may also be available. The production of fuel from an alcohol mixture, alcohol, ethanol and cellulosic biofuel may qualify for tax credit. Electricity generated from renewable resources may qualify as well.
Orphan Drug Credit
Credits may be available to taxpayers for clinical trial and development costs associated with certain drugs for rare diseases or conditions. The development drug must be designated as an orphan drug by the U.S. Food and Drug Administration. The credit is equal to 50 percent of the clinical trial expenses to taxpayers that meet certain criteria.
Cost segregation allows a taxpayer to take full advantage of short-term depreciation for an asset that may otherwise be depreciated over a 30-plus year recovery period. Reclassifying assets from real property to tangible personal property with 5, 7, and 15 year recovery periods that roughly match the useful life of the asset allows taxpayers to front-load deductions earlier in the life of an asset. In addition to accelerating depreciation deductions, cost segregation reduces tax liabilities and increases cash flow. A cost segregation study properly identifies an asset’s cost basis, property class and recovery period, leading to potentially significant present value after-tax benefits.