Tax-time advisory: Business services leaders help midmarket companies boost returns on R&D investments
Because manufacturers perform the bulk of private sector R&D to drive new products and process improvements, taking full advantage of the R&D credit is crucial. The fact is IRS scrutiny of this tax incentive has risen in recent years. As tax time comes to a close, RSM McGladrey and Axiom Solutions are offering tax credit services that some companies can take advantage of now.
Because manufacturers perform the bulk of private sector R&D to drive new products and process improvements, taking full advantage of the R&D credit is crucial. The fact is IRS scrutiny of this tax incentive has risen in recent years.
In a joint effort to help more companies increase after-tax return on their R&D investments and deliver enhanced R&D tax services to manufacturers, RSM McGladrey and Axiom Solutions LLLP —two business services providers for midmarket companies—will offer Research & Development Tax Credit Services to companies in the upper end of the middle market.
The R&D Tax Credit program, an economic investment incentive, has been in place since 1981 and recognizes investment that leads to the development of new, more efficient products and technological services. The R&D credit has become increasingly attractive to a broad range of businesses, primarily in the manufacturing, technology, and engineering industries. The credit applies not only to product development efforts, but also to manufacturing process improvements and certain types of software development.
In 2007, in an effort to close the tax gap, the IRS increased the scrutiny of Large and Medium Sized Businesses (LMSB) R&D Tax claims, declaring the claims as a Tier 1 Issue. As a result, RSM McGladrey and Axiom Solutions have each strengthened their offerings to an even higher level of precision and focus in documenting and substantiating the IRS areas of interest.
The RSM McGladrey R&D team comprises more than 60 R&D professional specialists, including accountants, tax attorneys, consultants, and former IRS specialists with significant experience preparing R&D claims and supporting documentation. Axiom’s R&D business is comprised of more than 45 accountants, engineers and tax attorneys from a variety of industries. The cooperative agreement allows RSM McGladrey and Axiom to work together on targeted marketing efforts and perform joint consulting engagements under primary/subcontractor arrangements.
Says Tom Windram, national R&D tax practice leader for RSM McGladrey, of the Axiom partnership, "Together we can offer high-quality R&D Tax Credit services to a broader base of clients. We are proud to work with Axiom, which has developed an excellent R&D Tax Credit practice very similar in philosophy to our own.”
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey