TaxOps Minimization
R&D FAQsWe create best practices within the industry and uncover opportunities to increase credits, deductions and deferrals in ways that often go undetected by other firms.

- Claim lucrative Research & Development credits and other tax saving opportunities
- Fast results and positive tax outcomes save our clients time, money and hassle
- Insights informing your tax decisions and transaction strategy
- Referred by other CPA firms to perform specialty work in areas where referring firms lack expertise
IN ADDITION TO TAX MINIMIZATION SOLUTIONS
We are R&D

- Businesses looking for comprehensive tax solutions
- Corporate tax departments needing R&D expertise
- CPA firms without in-house R&D specialty
- Businesses under IRS and state audit
Leverage Our Experience

We put our 60+ years of combined team experience maximizing tax savings to work for innovative businesses in all industries. Our efficient methods and strong use of technology reduce costs and keeps business disruptions to a minimum. We integrate a compliance framework so businesses can continue capturing ongoing credits easily and in audit-ready deliverables. Led by Mark Dunning, the TaxOps Minimization team is responsive day-to-day and accomplished negotiators in IRS and state proceedings.
Tax Savings Through Credits
We’ve generated countless millions of dollars in tax savings for our clients. So, when our clients say you cannot get a more experienced, innovative and efficient team pursuing tax saving strategies for your enterprise, they’re not kidding. The primary industries we serve are:
- Software & Technology
- Engineering
- Manufacturing
- Automotive
- Biomedical/medical devices
- Aeronautical
What our clients say
We work hard and are easy to work with. Don’t take our word for it. See what our clients have to say.

Research & Development Credits
Unlock the financing potential of R&D credits
These dollar-for-dollar federal and state credits are available to taxpayers who perform qualified research, and can return 4 to 6.5 cents for every dollar spent in qualified expenses.
New in 2016: R&D payroll tax offset
Companies with < $5 million in revenue and < 5 years of revenue can use the credit to offset payroll tax in the quarter after filing a tax return that includes research credit claims.
Increase net R&D credit return
We deliver fresh perspectives and proven strategies that:
• Qualify and quantify activities by associate per component and project
• Uncover additional expensing categories
• Streamline the interview, data and documentation process
• Increase validity of qualifications while keeping disruptions to a minimum
• Deliver audit-ready study on an indexed flash drive for easy record retrieval
• Integrate compliance framework and forward-looking tax saving strategy
R&D process
With an efficient, year-round process, we perform the R&D study on your timeline and deliver all reports, schedules and memos well before the tax return deadline. Our efforts extend to modifying your provision estimate.
Research & Development Credits
Unlock the financing potential of R&D credits
These dollar-for-dollar federal and state credits are available to taxpayers who perform qualified research, and can return 5 to 8 cents for every dollar spent in qualified expenses.
R&D Payroll Tax Offset
Companies with < $5 million in revenue and < 5 years of revenue can use the credit to offset payroll tax in the quarter after filing a tax return that includes research credit claims.
Increase net R&D credit return
We deliver fresh perspectives and proven strategies that:
• Qualify and quantify activities by associate per component and project
• Uncover additional expensing categories
• Streamline the interview, data and documentation process
• Increase validity of qualifications while keeping disruptions to a minimum
• Deliver audit-ready study on an indexed flash drive for easy record retrieval
• Integrate compliance framework and forward-looking tax saving strategy
R&D process
With an efficient, year-round process, we perform the R&D study on your timeline and deliver all reports, schedules and memos well before the tax return deadline. Our efforts extend to modifying your provision estimate.
§382 Limitation calculations
Businesses with accumulated net operating losses (NOLs) and tax credits could find access to these tax benefits limited by IRC §382/383 without proper planning. §382/383 studies measure when a limitation arises, and the allowable amounts, related to business events that include ownership changes and funding activities.
Value of §382/383 Studies
Net Operating Loss and Tax Credit Planning studies support the amount of deferred tax assets from NOLs or credits in financial statements, tax returns, and transaction due diligence.
IRS and State Controversy Assistance
At one time or another, most companies are faced with having to work with the Internal Revenue Service and other state revenue agents to settle tax issues in dispute. We work with national and local tax authorities to develop an audit and workout plan for settling outstanding tax issues, minimizing operating disruptions and frustration often associated with audits, pre-filing agreements, and appeals cases.
Uniform Capitalization §263A
The Internal Revenue Service requires taxpayers to capitalize overhead costs associated with inventory, which increases taxable income. There are several different methods to determine what to include in the calculation. Due to the complexity of the calculation, many taxpayers include costs that should be excluded or use less-than-optimal calculation methods, thus increasing the capitalization.
Value of Uniform Capitalization Study
Through a uniform capitalization study, costs are analyzed and the optimal calculation method is selected for capitalizing overhead costs associated with inventory and lower your tax obligations
§174 & §59(e) Capitalization
Historically under §174, taxpayers were allowed to expense all research expenses or elect to capitalize these costs over five years. For tax years starting Jan. 1, 2022, all businesses—from multi-billion-dollar corporations to small business owners—have been required to capitalize §174 costs, including software development costs. These companies must capitalize all IRC §174 expenses, spreading the amortization of those expenses over either five (US costs) or 15 (foreign costs) years.
Among those impacted are businesses:
- Making use of §174 expense deductions
- Claiming R&D credits
- Preparing income tax provisions
- Making quarterly estimated tax payments
Section 59(e) provides an optional election to capitalize and ratably amortize §174(a) R&E expenditures over a 10-year period beginning with the taxable year the expenditure was made.
Each taxpayer must follow the law, both capitalizing and amortizing research expenses in alignment with their respective timing situation. Reach out to your TaxOps adviser for more guidance.
Insights & Events

Transitioning R&D Expenses: Implementing New §174 Capitalization Requirements CPE
New §174 requirements came in like a lion in 2023, causing significant changes for taxpayers of all sizes in how they identify assets and account for expenses. Join TaxOps' Jamie Overberg and PwC's James Graf as they share some of the headaches and challenges of...

§174 Capitalization Updates: What We Know
The IRS provided guidance on the automatic change issue for §174 but is silent on what should or should not be included in the §174 capitalization. We are watching this issue closely and want to share with you where it stands right now. Download PDF − By Mark Dunning,...

Welcome Ross Heskett to the TaxOps Team
We are pleased to announce that Ross Heskett joined the TaxOps Team as a Tax Senior on the Federal and Corporate Tax team! Ross has diverse experience in tax and specializes in tax provisions in accordance with ASC 740. He also prepares and reviews C corporations, S...
Dig deeper with expert analysis.

View Our Other Solutions
Federal
No two businesses are the same. So, our federal and international tax solutions are fully customized to the way you do business.
State and Local Tax
What you don’t know about taxes shouldn’t undermine your business success here, in all 50 states, five U.S. territories and internationally.
ASC 740
Accounting for income taxes is detail-oriented, complex and time-consuming. Let’s take it off your plate.
Get the right set of eyes on your challenging tax issues.
We like what we do, which makes us fun to work with. Don’t take our word for it.