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THE APRIL 18TH TAX DEADLINE IS APPROACHING FAST
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THE APRIL 18TH TAX DEADLINE IS APPROACHING FAST
DON'T FORGET TO CLAIM YOUR R&D TAX CREDIT! BOOK A CALL TODAY
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Days
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hours
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April 14, 2022
1 min read
Tax Day is April 18, 2022! It’s fast approaching and you’re realizing you’re not going to be able to file in time. So, what are your options? And will it still be possible to claim your R&D tax credit?
Looking like you can’t make the April 18, 2022 tax deadline to file your tax return? The good news is you can prepare your R&D tax credit now (in under an hour) so it is ready to go when you file your taxes.
If you’re a business filing for an extension that doesn’t mean you’re out of luck when it comes to claiming your R&D Tax Credit. Any eligible business can file their R&D Credits along with the returns they file after the six-month extension. To find out if your business is eligible, answer a few questions at Neo.Tax — if you’re a startup and are filing your returns without filing for an R&D credit, you may be leaving as much as $250,000 on the table.
The IRS makes it relatively simple to file for a Federal Tax Return Extension. However, while requesting an extension is straightforward, there are some important things you need to remember:
Companies operating as a C-Corporation can request a six-month extension by filling out Form 7004, which can be mailed or e-filed via the IRS website.
One last note: Leave yourself a little time when filing your Form 7004, because the IRS will alert you if there were errors that caused your extension to be denied. You have a chance to refile Form 7004 with any corrections as long as it’s still before the deadline.
Your R&D tax credit must be filed with your tax return. If your extension is granted, you will have until October 17, 2022 to file your tax return and your R&D tax credit.
Tax season used to be the worst time of the year, but at Neo.Tax, we’re committed to making it simple, straightforward and valuable for startups. Let us help you file today (or six months down the road)!
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At Neo.Tax, we talk to scores of controllers and Heads of Tax every month. One thing is clear: the old way of filing for R&D Tax Credits has become a burdensome pain. You’d think that so many businesses moving their project management and payroll online, via software like Jira, Rippling, and Workday would simplify the filing process. But, in some ways, it’s made it harder.
The payroll and project management output is a rich dataset, but it’s also, well, voluminous. If that data is not inputted perfectly—and let’s be honest, it never is—that means it’s up to a controller or Head of Tax to sift through the mess to create the filing. Engineers need to be trained (and retrained) on the correct project tagging process, and then cajoled to sort out any inputting errors. It’s a waste of time for your filer and your engineering teams.
Which is why Neo.Tax created our AI system.
No one starts a company because they’re excited about accounting and taxes. Well, no one except the Neo.Tax founders :)
But for those other 99% of founders, here’s a cheat sheet and guide to ASC 350-40, an accounting guideline that pertains to Internal-Use Software Development Costs. Maybe you’ve never heard of ASC 350-40, but you should get to know the rule if you ever plan to go public.
