Business leaders understand that consistent investment in research and development is essential for competition.  Alliant Group works with clients to claim all possible tax credits for qualifying work.  Risk of failure is an important qualifying factor.  Attempts to improve a product or service that are not successful offer insight for everyone.  Adjustments to the process are made and another attempt is performed.  Iterations cost money in the form of materials, expertise and time.  Tax credits are available for the R&D work performed in companies of all sizes in 30 industries.  Success is rewarded through greater market share and company growth.  Perceived failure is offset through lucrative tax credits.

Alliant Group conducts tax credit surveys for potential clients.  Throughout each study, the leaders begin to realize that a great deal of the work performed can qualify for R&D tax credits.  Each day, people strive to do every task in a more productive way.  Some adjustments are so dramatic that the savings in material and time is measurable.  Training is essential in the quest to identify qualifying work in the daily routine.  Industry experts at Alliant Group work with people throughout the organization to maximize the qualifying tasks and roles.

Appropriate records must be kept throughout each project and normal business process.  Alliant Group knows that some leaders assume this process is cumbersome.  With proper guidance, the documents can be created without unnecessary strain on the operation.  The tax credits are worth every ounce of effort in following the claims process.  R&D happens throughout many companies because of the importance of making constant improvements.  The days when all research was performed in a sterile room are over.  Advancements happen when one employee decides to adjust a piece of equipment or procedure to optimize resources and improve the outcome.  Reducing the company tax burden will create more jobs.

Research and development is a broad term for innovation that can improve existing products and processes or develop new ones.  Alliant Group works with clients to ensure that every role and task has been optimized to increase the percentage of work that can qualify for R&D tax credits.  Costs associated with R&D can be recovered when appropriate documentation is prepared and filed with the IRS.  Recovery of the expenses associated with R&D has been the focus of tax credits from the program’s inception in the 1980s.  Congress established the program to encourage businesses to innovate, which would bring the country out of a deep recession.

Decision makers must realize that the costs of innovation can be recovered even if the attempt does not bring about the expected result.  Alliant Group knows that multiple attempts will be required to refine processes and implement product improvements, and without tax credits, companies would continue to innovate, but progress would be measurably slower.  Lower tax burdens ensure that companies have healthy cash flow, which funds innovation during the tax year.  Materials and expertise are expensive but necessary when investing in innovation that is intended to establish and maintain a competitive lead in the marketplace.

Detailed recordkeeping allows the company to create accurate documentation that will be required to claim R&D tax credits.  Alliant Group has teams of industry experts ready to work with clients.  Experience provides insight for leaders and employees who want to seize every possible tax credit.  R&D is no longer confined to a sterile environment where everyone wears white lab coats.  Throughout every company, people are devising new ways to complete the necessary work while saving time, resources, and money.  Innovation continues to be expensive but necessary.  Wise business leaders will embrace the R&D tax credit program and recognize the value of claiming every possible credit.

The day an audit notice arrives from the IRS or state department of revenue does not have to be frightening as Alliant Group works with clients to guide the entire audit process. Careful preparation is essential to provide the requested information without volunteering additional information. TCS is an entire team of experienced tax professionals who have developed a comprehensive audit strategy for this purpose.

Clients facing an audit should consider these important phases of the process:

• Pre-audit analysis – audit planning – Alliant Group ensures that clients have an appropriate document retention program before an audit notice arrives. Important materials must be available to substantiate financial practices that are part of business processes. Too many business owners wait until the IRS arrives to take a defensive posture during the audit. The best approach is to maintain a state of preparedness that will answer audit questions with appropriate substantiation.

• Audit management – Experienced accountants will decipher the intent of the IRS audit and focus the agent on the key issues. Clients are reminded to ask if the audit will be a Limited Issue Focused Examination, or LIFE, audit or a general audit. Appropriate audit management provides the requested information without losing track of the goal: to end the audit in a timely and fair manner.

A mismanaged audit can cause significant impact on the revenue-generating business activities. Alliant Group handles the daily tasks that provide responses to the auditor’s questions allowing the business owner to be able to focus on their daily operations.

•  Procedural knowledge – Alliant Group has a team of 70 attorneys and other professionals ready to defend a client against any tax audit. Various procedural mechanisms are available for use by the taxpayer in response to audit questions. Appropriate use of each one will expedite the audit proceedings.

Clients are encouraged to notify Alliant Group whenever an audit letter is received thus making preparation essential to take control over the entire audit process.

Businesses and governments agree that good jobs draw great people into a community.  Alliant Group knows that cities and states have embraced the tax credit idea created in the federal government in the 1980s.  A state can offer tax credits to companies of a certain type that will complement the existing employer base.  Outside companies will move into the area and provide a product that fits within the production chain of other companies.  Tax credits are used strategically to reduce the cost of moving and to retain the companies for many years.  Other types of taxes offset the loss of revenue to the taxing authority.

A city might create tax incentives to encourage companies to move closer to an abandoned sector of town.  The housing values and school quality will rise because the jobs are nearby.  Alliant Group encourages companies of all sizes to request a tax credit study prior to making major decisions.  Informed decisions allow a company to select the community that will offer the best combination of tax credits, good employees and infrastructure.  Industry specialists and Alliant Group stay abreast of the legislation updates across the country each year.  Federal program changes are more subtle than the new state and city programs that are developed annually.

Unfortunately, existing companies assume that the tax credits are designated for newcomers.  Savvy business leaders will ask Alliant Group to conduct a tax credit study to ensure that every local, state and federal tax credit claimed each tax year.  All open tax years are eligible at the federal level.  Careful examination of each program ensures that businesses will not miss out on the tax savings.  Millions of dollars remain unclaimed each year, so businesses are wise to get started early and make the necessary adjustments to create qualifying roles and tasks.

Tax incentives are designed to encourage the types of business practices that lead to innovation and competitive edge.  Alliant Group works with clients in every sector of the American economy to find every possible tax incentive.  Unfortunately, many decision makers are operating under the assumption that tax credits are available to everyone but them.  Initial tax credit programs were designed for large firms.  Over the years, Congress has devised broader programs that include firms of all sizes.  Tax credits can open doors for smaller firms to grow through purchasing new equipment and hiring people with certain skills.

A surprising number of typical activities qualify for tax credits.  Alliant Group has teams of industry experts who can identify the roles and tasks that qualify under the guidelines within the IRS R&D tax credit code.  Maximizing the number of qualifying activities in every project will allow companies to save hundreds of thousands of dollars every year.  Reducing the tax burden encourages companies to continue to participate in innovation every year.  Efforts to innovate can fail, which results in significant loss of effort and money.  Creative approaches to old processes will save resources and improve standard practices.

Constant innovation ensures that American companies will remain leaders in the global marketplace.  Alliant Group reminds all business leaders that the people who wear white lab coats are not the only innovators.  Many different people within a company can create new ways to save materials, reduce waste and improve the final product.  All of these activities can qualify for tax credits when the roles and tasks are created according to the existing guidelines.  Each project must be preceded by a tax credit study that will educate the client in the use of tax incentives.  Participation in every possible tax credit program can save a company from the brink.

Improvements to buildings, bridges and sports venues are the direct result of innovation throughout the engineering discipline.  Alliant Group has teams of industry specialists that work with engineering firms to maximize the tax credits for which they qualify.  Congress designed R&D tax credits to encourage all engineering firms to improve processes and designs.  Without the credits, each project would be more expensive to complete.  Innovation would occur without the credits but at a much slower pace.  Americans are encouraged through lower tax burdens but never stifled by challenges.  Creative approaches to old problems will become standard procedure for other firms in the future.

While tax credits encourage measurable improvements to energy efficiency and structural integrity, engineering firms want to create competitive edge.  Alliant Group encourages engineering firms to ask for an R&D Tax Credit Study prior to starting any new venture.  Expert engineers on the Alliant Group team will work with the client to define roles and tasks that will qualify for tax incentives.  Maximizing the percentage of project tasks that qualify for tax credits will reduce the tax burden and final cost of the project.  More jobs are created and new equipment purchased when every engineering firm takes the time to claim every possible tax credit.

Each year, millions of tax credit dollars remain unclaimed because firms assume that too much effort is required to complete the documentation.  Alliant Group experts work with engineering firms of all sizes to master the procedures to claim tax credits.  As part of each project, the documentation will be generated with little effort.  Previous credits can be claimed if sufficient documentation exists.  All open tax years are eligible for R&D tax credits.  Engineering firms will find assistance when contacting Alliant Group early in the project schedule.  Saving money through tax credits has never been easier.

Companies with manufacturing operations in the United States and sales functions outside the country are eligible for IC-DISC tax credits.  Under the IC-DISC, the company would establish a separate tax entity to act as a commission agent for exported goods.  Alliant Group encourages all companies with overseas ties to ask for an independent tax credit study.  Many companies are surprised to find that they are eligible for the IC-DISC.  In the early days, the IC-DISC was offered to firms that fell into the Fortune 1000.  In 2012, firms of any size can realize substantial tax savings because the tax law was amended in 2003.

The separate entity is paid commissions, which are eligible for a 20 percent tax deduction.  Companies are realizing tremendous savings because the commissions paid can be as high as 50 percent of the net export income.  Through the guidance of Alliant Group, many companies with foreign operations are utilizing the IC-DISC to reduce the domestic tax burden.  Experts on the Alliant Group team know the best approach for optimizing the uses of the IC-DISC in most industries.  Companies that sell to other businesses with export operations can qualify for the IC-DISC as well.  This unknown fact has made many companies unaware of the benefits that are available.

Once the IC-DISC is established, the client is taught the best way to complete the proper documentation to accompany the tax returns.  Every Alliant Group client with an IC-DISC has access to experts with applicable experience in the industry.  As the company grows, appropriate changes will be made to the IC-DISC to optimize its uses and the applicable benefits.  All companies with foreign operations are encouraged to contact Alliant Group before the end of this tax year for a consultation.  Claiming credits on previous tax years is more challenging since the documentation is harder to create.

Businesses in every sector are conducting innovative activities to become more competitive and efficient.  Alliant Group wants all business owners to know that R&D tax incentives exist to help them recover some of the expenses associated with innovation.  Specialized skills are needed to conduct research that can open new doors for any business, and the funds required can be found through R&D tax credits.  Alliant Group knows that many companies assume that only Fortune 1,000 companies can qualify, but Congress has made significant modifications to the qualification requirements.

Oil and gas companies have always taken advantage of R&D tax incentives in their efforts to find more efficient methods of extracting natural resources.  Biomedical device development companies have started to realize that Alliant Group’s guidance to apply for tax incentives is accurate.  Even companies in the plastics industry have listened to Alliant Group specialist’s advice to structure their projects to qualify for tax credits.

Any company that embarks on a quest to improve the designs and processes that support their products and services might be a candidate for the R&D tax incentives.  Alliant Group encourages companies to track all expenses associated with research and development.  Qualifying R&D activities can qualify for a 20 percent research tax credit, which can provide hundreds of thousands of dollars in tax relief.  Decision makers benefit from the guidance offered by Alliant Group since they can make decisions prior to incurring expenses.

R&D tax credits will offset taxes owed or paid instead of reducing the company’s taxable income.  Alliant Group can assist clients with defining activities, but accountants are the best professionals to provide tax advice.  All open tax years are eligible, which includes the previous three or four years, the current year and the next 20 years.  Alliant Group has witnessed the benefits realized by businesses that have qualified for the benefits.

The first step is to throw away every assumption about traditional definitions of R&D, which always meant the development of new products for the company and industry.  In the Information Age, the definition of research has changed.  Alliant Group knows that research is improvement to processes, products, techniques, formulas, software and inventions.  Companies benefit from the efforts of Alliant Group to help them qualify for every possible R&D tax incentive.  Innovation will put America back on top, and Alliant Group wants to help every company participate through R&D tax credits.

alliantgroup’s Strategic Advisory Board is a carefully selected team of high-profile experts in the fields of management, accounting, tax, law, business, and public policy. As the “Official Sponsor of American Innovation and Job Creation,” the Board’s mission is to strengthen American businesses and the CPA firms that serve them.

A few benefits of being a member of alliantgroup’s prestigious Strategic Advisory Board include:

• Invitations to exclusive VIP programs and Think Tank sessions all designed to promote business best practices and to gain new perspectives and ideas
• Unparalleled networking and affinity marketing resources that will allow members to extend their circle of  contacts to gain new business and access valuable information
• Access to 4,000+ CPA firms for networking and business opportunities

alliantgroup’s Strategic Advisory Board members

Mark W. Everson - Former IRS Commissioner; alliantgroup Vice Chairman

Jim Ramstad - Former U.S. Congressman of the IRS Oversight Committee; alliantgroup Senior Advisor

Rick Lazio - Former U.S. Congressman; alliantgroup Director

Kit Bond - Former Missouri Governor & U.S. Senator; alliantgroup Senior Advisor

Bob Riley - Former Alabama Governor and U.S. Congressman; alliantgroup Director

Dean Zerbe - Former Senior Counsel to the U.S. Senate Finance; alliantgroup National Managing Director

Dawn Levy O’Donnell - D Squared Tax Strategies, Partner

Jay Adkisson, J.D. - Adkisson’s Captive Insurance Companies, Author

Christopher M. Allegretti, CPA - Hill, Barth & King LLC’s (HBK), Managing Principal & CEO

Steve Austin, CPA - Swenson Advisors, LLP, Firm Managing Partner

Kevin Begley, CPA - Decosimo, Corporate Tax Principal

Russ Bradshaw, CPA - Van Wagoner & Bradshaw, Managing Partner & Chief Tax Partner

Dave Brotemarkle, CPA - BDCo, Managing Partner

Philippe Camus - Alcatel-Lucent, Chairman of Board of Directors

Bob Berntson, CPA - Berntson Porter & Co. PLLC, President

James A. Cordova, CPA - Windes & McClaughry, Chairman of the Tax & Accounting Services Practice

Donald J. DeGrazia, CPA, ABV - Gold, Meltzer, Plasky & Wise, Senior Shareholder

Arthur J. Dellinger Jr., CPA - Federal Tax Practice Standards for the CCH Tax Practices & Procedures Library, Author

John T. Dillon - Former Chairman & CEO of International Paper

Tom Gibbons, CPA - Frost, PLLC, Partner & Head of Tax Department

Martin L. Greenberg, CPA - Roren Seymour Shapss Martin & Company LLP (RSSM), Managing Partner

William R. Hagaman, CPA - WithumSmith+Brown, PC, Managing Partner & CEO

Ed Hanley, CPA - Shea Labagh Dobberstein, Director & Principal

Victor K. Hausmaninger, CPA - Hausmaninger Benoe Lang & Alford, CPAs (HBLA), CEO

Josh Hayes, CPA - Eide Bailly LLP, Partner

Thomas R. Johnson, EA - Johnson, Harris & Goff, PLLC, Partner

Bobby Kocol - SGI, CFO

Ryan L. Losi, CPA - Plascik & Associates, P.C., Executive VP

David P. McKelvey, CPA - Friedman, LLP, Tax & Business Consulting Partner

Jeffrey S. Pawlow, CPA - The Growth Partnership, Inc., CEO & Managing Shareholder

Greg Porter, CPA, CVA, CFFA - Berston Porter & Company PLLC., President of Wealth Management & Consulting

Robert M. Pratzel, CPA - HOK Group, Inc., Senior Financial Advisor

Barry Resnick, CPA - The Resnick Druckman Group, Partner

Jeffrey Resnick, CPA - The Resnick Druckman Group, Partner

Dave Springsteen, CPA - WithumSmith+Brown, PC., National Tax Services Group, Partner

Len Schutzman - Evercore Capital Partners, Operating Executive

alliantgroup has developed a Marine Industry Specialization Program to focus qualification and quantification on R&D tax benefits for companies operating in the diverse areas that comprise marine vessel construction (e.g. barges, tug boats, yachts) and  salvage along with marine contractors providing environmental structures, pipeline construction, dredging services, underwater construction and dam repairs.

alliantgroup has put into place a team of professionals with educational backgrounds specific to the marine construction industry with hands-on research experience within the disciplines of manufacturing, engineering, electronics, material sciences, lean manufacturing, construction, and chemistry. alliantgroup’s focus is to know your business from the ground up, to provide the most accurate, concise information for taking the best advantage of qualifying and quantifying R&D tax credits.

There are many components within the marine construction industry that would qualify companies for tax incentives. Listed below is a sampling of items that alliantgroup has targeted for potential R&D tax credits:

• Design of rigging systems and cranes for marine construction

• Development of winch components for salvage projects

• Optimizing shipbuilding methods through pre-process planning

• Block assembly planning for shipbuilding efficiency

• Analyzing optimal welding techniques for specific performance requirements

• Evaluating alternative joining methods and techniques for improved hull assembly performance

• Development of piling templates for pier construction efficiency and structural integrity

• Improving dredging equipment for implementation efficiencies and operator safety

• Heavy-lift planning for crane stability, lift execution performance, and process efficiency

• Shipyard heavy equipment upgrades for additional functionality or improved performance

alliantgroup provides a preliminary assessment to help companies become aware of possible R&D incentives, so the efforts of change, renovation and progress are not overlooked by marine companies ranging from small, private construction firms to large, multi-national, publicly traded marine corporations. Contact alliantgroup today at 800.564.4540.