Mehanna CPAs & Advisors

Claim the R&D tax credit with Mehanna Advisors

Your business could save up to $250,000 or more through the R&D tax credit.

Mehanna Advisors helps you maximize your savings while doing the heavy lifting. We handle the whole process so you can skip the paperwork and get back to business.

What is the R&D Tax Credit?

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Does your business incur research and development costs in the US? Then you may be able to claim a sizable tax credit of up to $250,000 or more. Once approved by the IRS, the R&D credit is applied towards your business’s future payroll tax liabilities.

Businesses across many industries can qualify for the R&D credit – including technology, ecommerce, bio-tech, hardware, and more.

Claim the R&D tax credit, without the headache

You could save thousands through the R&D credit, so it’s important it’s done right. We handle the tax claims process from start to finish and provide the necessary documentation to back up your claim with the IRS. Claiming the R&D tax credit can be complicated and tedious, but we make it easy.

End-to-end service

We handle the full R&D tax claim process for you. That includes identifying eligible R&D expenses, filing the right paperwork, and making sure your credit is accurately applied through your payroll.

 

Meticulous documentation

Our combination of software and experts make the R&D claim process and your paperwork meticulous. We also ensure your payroll provider, tax preparers, and accountants are all on the same page.

 
 

All-in-one support

With Mehanna Advisors you get bookkeeping, tax, and R&D credit support all under one roof. We already know your numbers from the ground up: That means we work fast and efficiently to identify expenses and maximize your savings.

Frequently asked questions

What activities qualify for R&D tax credit?

Qualifying R&D expenses and/or activities are those which pass this four-part test:

  • Technical uncertainty. The activity is performed to eliminate technical uncertainty about the development or improvement of a product or process, which includes computer software, techniques, formulas, and inventions.
  • Process of experimentation.The activities include some process of experimentation undertaken to eliminate or resolve a technical uncertainty. This process involves an evaluation of alternative solutions or approaches and is performed through modeling, simulation, systematic trial and error, or other methods.
  • Technological in nature.The process of experimentation relies on the hard sciences, such as engineering, physics, chemistry, biology, or computer science.
  • Qualified purpose.The purpose of the activity must be to create a new or improved product or process, including computer software, that results in increased performance, function, reliability, or quality.

Do I qualify for R&D tax credits?

Unlimited, if applying the R&D credit against income taxes. These credits can range between 5% and 15% of qualifying R&D costs. If taking the PATH Act R&D credit, a company can receive up to $250k against payroll taxes and take the remainder against income taxes.

As an example, for an unprofitable 5-person tech startup that has less than $5M in annual revenue with roughly 80% of time being spent on qualifying R&D activities, and average salary of $100k/year, the credit might be between $20k to $60k. Mehanna Advisor’s fee is a small percentage of the total qualifying R&D expense and easily pays for itself by securing the R&D Tax Credit for you.

Does Mehanna Advisors support you in case of an audit?

Yes, we will support you in case of an audit. For more details on pricing, please contact us.

 

Can I claim the R&D credit retroactively?

Yes, we can help you file an amended tax return to claim the R&D credit for previously filed Income Tax returns (past 3 years), but you cannot take the PATH Act R&D credit on an amended tax return.

What does Mehanna Advisors R&D Credit Service include?

We help businesses with all aspects of claiming these R&D Tax Credits. Mehanna Advisors will:

  • Identify and calculate qualifying R&D expenses
  • Prepare Forms 6765, 8974, and 941 to gain IRS approval of credit. If you use Mehanna Advisors Tax, we’ll file on your behalf as well.
  • Prepare all required supporting technical and financial documentation, including documentation of research time, R&D payroll expenses, etc. This is an important pre-requisite to support an IRS audit in case that happens.
  • Coordinate with your tax preparer, payroll provider, and accountant to ensure your books and taxes are accurate
  • Continually ensure the credit is applied correctly against your payroll liabilities
  • Email and phone support with R&D credit experts
 

How large will my R&D tax credit be?

Unlimited, if applying the R&D credit against income taxes. These credits can range between 5% and 15% of qualifying R&D costs. If taking the PATH Act R&D credit, a company can receive up to $250k against payroll taxes and take the remainder against income taxes.

As an example, for an unprofitable 5-person tech startup that has less than $5M in annual revenue with roughly 80% of time being spent on qualifying R&D activities, and average salary of $100k/year, the credit might be between $20k to $60k. Mehanna Advisor’s fee is a small percentage of the total qualifying R&D expense and easily pays for itself by securing the R&D Tax Credit for you.

Can I use Mehanna Advisors R&D Credit service without using Mehanna Tax?

Yes, we’ll calculate the R&D tax credits and provide the necessary documentation for your tax preparer to file. If you use Mehanna Advisors Tax, we’ll take care of the full process and file the necessary tax paperwork on your behalf as well.

 

Are there state-level R&D tax credits?

33 states currently offer an R&D credit. Generally, the states follow federal guidelines on what constitutes qualified R&D expenditures with few exceptions. Mehanna Advisors will provide guidance on state level credits. For example, the CA R&D credit is non-refundable which means it cannot be taken against payroll tax. Work must be done in CA to be considered qualified and CA credits can carry forward indefinitely until exhausted.

Your full finance stack

Mehanna Advisors goes beyond bookkeeping to offer everything you need for your business’s financial management.

Bookkeeping

Our expert bookkeepers are supported by powerful software, ensuring books with unmatched accuracy. Plus, get industry-specific reports, with metrics that matter.

TAX

Get your tax prep and bookkeeping handled seamlessly, together. We file your business income taxes, including 1099 filings, and local and federal tax returns – so that you’re compliant with the IRS.

CFO Services

Need advanced finance support? We have your back. Get the expert CFO support for your business needs, from building budgets to fundraising preparation.

Claim your R&D tax credit with Mehanna

We make the process easy and meticulous, so you can skip the paperwork and get back to business.

 
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Meeting length: 30 Minutes