Is Your Company Eligible for Tax Credits?

You receive a call during your busy workday. A caller at the end of the line informs you that based on your company profile you may be eligible for substantial tax credits. How much? They cant say yet however the average is $250,000. Sometimes much, much more.

You try and find the catch. Upfront fees? Zero, the company offers to pay all expenses.

References? Company has multiple ecstatic clients including many CPA firms who offer their service to maximize their clients returns.

Price? Strictly success basedmeaning if your company does not qualify and you receive no money, you do not pay a dime.

Sound too good to be true right? After all free money? Cmon

But this is an example of a real life call from a company in the small yet growing industry of specialist tax recovery firms in North America.

And the tax credits are real enough. Individual companies have been credited back an up to an amazing 3 MILLION dollars that they were completely unaware of. Total available credits run in the billions. Average recoveries in small to midsize firms are a quarter of a million dollars. But how can this be? And why are you not aware of it?

Robert Edwards senior research director at Paradigm Partners LP, a Texas based Tax recovery firm states there are just too few companies like his and too many eligible companies to get the word out in any efficient manner. The government has created these incredibly beneficial incentives, however less than 5% of companies are even aware of them. Even worse the time, effort and expertise required to actually get a share of these credits is far beyond the scope of even the best-trained generalist CFOs and CPAs. In fact many CPA firms now outsource their tax credit business to specialists such as Paradigm. It is a win/win as Paradigm is one of the few companies who work on a contingency basis, meaning no huge upfront fees are required. And if the company is not eligible it doesnt cost them a dime.

Who qualifies for these credits?

Basically depending on the tax credit the best candidates fall into one or several of the following categories:

Manufacturing
Fabrication
Engineering
Architecture
Construction
Software Development
Electronics
Biotechnology
Medical Practices
Surgical Techniques
Oilfield Services
Food Sciences and Agro-Business

The biggest misconception states Edwards is the companies dont believe they are high tech enough to qualify. As he puts it A company making manure bags is just as eligible as a tech company in Silicon valley, sometimes even more eligible