Savings help Plastics Manufacturer recover government taxes paid and reduce tax liability going forward.
Expense To Profit’s Expertise in Tax Credits
ETP was initially introduced to a plastics manufacturer via its accounting firm back in January of 2018. The goal was to review their business activities and to see whether they qualified for the federal R&D Tax Credits. After the initial review, ETP determined that they would be a great candidate for an R&D Study and was engaged immediately to begin the process. Some of the company’s qualified research activities included expenses dedicated to prototype work, design efforts, and their engineering expertise. We were also able to qualify some unique software applications, and patents on their processing as well as outside contracting costs.
ETP’s 6-Step Review Process:
- Secure Employment & Tax Data: Our client sends us their tax returns, payroll information, and W2 Box Wage information.
- Interviews: One of our tax directors conducts interviews with top management and completes an in-person site visit.
- Initial Review: We complete an Executive Summary and the results are reviewed with our client and CPA.
- Engineering Report: A Final Engineering Report is Delivered to the client.
- Filed Amended Returns: Our clients’ CPA firm files the amended tax returns for the affected years with the IRS
- Receive Refund: Our client directly receives a refund of the overpaid taxes from the IRS.
Based on their annual payroll and annual revenue, ETP was able to not only get the tax credits in the current year, but we were also able to get them a tax refund for the prior three years. ETP has been retained to review the R&D Tax credit opportunity annually.
Plastics Manufacturer Dollar for Dollar Tax Credits
| Tax Year: | Amount |
|---|---|
| 2015: | $40,495 |
| 2016: | $45,813 |
| 2017: | $55,058 |
| 2018: | $46,079 |
| Total Savings: | $187,466 |
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