Research and Development

Your Innovation is Your Strength. Let Us Handle the Tax Complexity.

Your business thrives on innovation. You invest time, resources, and capital into developing new products, enhancing existing processes, or creating groundbreaking software. This commitment to research and development (R&D) is the driving force behind your growth. But are you fully leveraging the tax incentives designed to reward that innovation?

The Research and Development tax credit is a powerful, dollar-for-dollar reduction of your tax liability, yet many businesses overlook it or fail to claim its full value. The rules are intricate, the documentation requirements are specific, and the landscape is constantly changing. For many business owners, what begins as an opportunity can quickly become a source of confusion and risk.

At Frost Law, our team of tax attorneys has guided numerous businesses through the complexities of the R&D tax credit. From our offices in Annapolis, Maryland, we have assisted clients across the country, providing the tax advisory support you need to confidently claim the credits you've earned while you focus on what you do best: innovating.

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Understanding the R&D Tax Landscape

Are you sure your activities qualify? Do you have the necessary documentation to support your claim? What happens if your claim is questioned?

These are common concerns that can deter a business from pursuing valuable tax credits. The IRS has a four-part test to determine what constitutes "qualified research". The activities must serve a permitted purpose, be technological in nature, intended to eliminate uncertainty, and part of a process of experimentation.

Our tax attorneys help businesses understand the requirements for research and development. We work with you to identify qualifying research expenses—from employee wages to supplies and contractor costs—and ensure your claim is built on a solid foundation.

Comprehensive R&D Tax Services for Your Business

Whether you are a new venture or an established company, your R&D tax strategy needs to align with your specific circumstances. Our team is equipped to assist with a range of needs related to research and development.

  • Maximize Current & Prior Year Credits: We thoroughly analyze your qualified activities to optimize your current-year credit and recover missed savings for open tax years. 
  • Start-Up & Small Business Advantage (Payroll Offset): We help qualified start-ups and small businesses use the R&D Credit to offset payroll taxes instead of income taxes, providing immediate cash flow relief. Learn more about our tailored approach for Start-Ups.
  • Reverse Audits ("Second Look"): Leverage our legal rigor for accuracy. We conduct a precise, independent review of R&D studies prepared elsewhere, ensuring all eligible expenses are included and that the necessary substantiation and documentation is in place.
  • Proactive Audit Defense (Federal & State): An IRS audit notice can be unsettling. As tax attorneys, our primary goal is to minimize your risk. We provide expert representation and comprehensive Audit Support if your claim faces examination by the IRS or state authorities, protecting your credit and your business interests.
  • Strategic Section 174 Compliance: We offer clarity and guidance on the complex rules governing the capitalization and amortization of R&D expenses. Our team advises on implementing the most advantageous accounting methods to ensure long-term tax compliance and efficiency.

Your Partner in R&D Tax Strategy

Navigating Research and Development tax law is about more than just filling out a form. It’s about building a sustainable strategy that aligns with your business goals and minimizes risk. 

Our tax attorneys understand the challenges businesses face and are here to provide the support needed to turn those challenges into opportunities. Contact our team today at (410) 497-5947 or schedule a confidential case evaluation. Let’s discuss how we can help your business secure the full value of its innovation.

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