Learning the Basics of R&D With Source Advisors
When claiming R&D Tax Credit, there are a few basics to keep in mind. First and foremost, it’s essential to ensure that the claimed activities meet the criteria of qualifying research and development as defined by the IRS. The three components necessary for an activity to qualify as research and development under Internal Revenue Code (IRC) Section 41 are as follows: 1) The purpose of the activity must be technological in nature and must involve the hard sciences, such as engineering, physics, chemistry, or computer science. 2) There must be a process of experimentation to determine the capability or function of the product, process, or software being developed. 3) The process must rely on principle-based information, such as trial and error or other methods of experiment...