We all know how crucial technology companies are for the economy. Technological innovation has helped businesses across multiple industries increase productivity, efficiency, and scale.
To help drive continued innovation, the US government created the R&D Tax Credit program in 1981. This program provides significant tax benefits for businesses that are developing new or improving existing products, processes, techniques, inventions, formulas, or computer software.
Many companies do not claim the R&D tax credit because they either do not know about it or they find the application process too cumbersome as they need to be able to show that they encountered technological uncertainties during their research and development efforts for which no solution was available publicly. In addition, they need to identify associated expenses such as employee salaries along with time tracking, as well as costs incurred for contractors, patents, off-premise leased computers, and supplies.
Irrespective of project eligibility, all expenses claimed for the R&D tax credit require backup evidence in order to mitigate the risk of getting denied in an IRS audit. In fact, the R&D tax credit has been consistently listed in the Dirty Dozen List of tax scams by the IRS every year.
Once the information is compiled, it needs to be entered into the respective Federal and State, R&D tax credit forms and filed with a company’s corporate income tax return.
Entrepreneurs Alex Popa and Lloyed Lobo started Boast.AI to help streamline the R&D tax credit application process. This will particularly be of help to startups during the pandemic who have to attend to other critical business needs.
Boast leverages its proprietary R&D Tax Credit software platform along with in-house R&D Tax experts to help identify qualifying projects, prepare technical narratives, financial reports and Research and Development tax credit forms, as well as handle all communications with the government. Boast does not charge any fee until businesses receive their R&D tax refund check from the government, thereby enabling businesses to get funding without the risk and effort.