Advisory
Assurance
Tax
Technology
By David M. Desmarais
By Daniel M. Andrea
Employee Benefit Plans
By Tyler Gay, CPA
KLR Executive Search Group
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Maximizing R&D Tax Credits
Client is a cutting-edge biotech company specializing in advanced biomaterials. Like many early-stage companies focused on innovation, the company was heads down building breakthrough technology — without realizing they were potentially leaving significant tax benefits on the table. At the time, they were working with a small accounting firm that lacked specialized R&D expertise. The team didn’t believe they qualified for research credits, especially given they were generating Net Operating Losses (NOLs) and consequently no income tax liability.
As the company moved through a critical growth phase, they faced a number of tax-related challenges:
KLR’s R&D Tax Credit team quickly assessed the company’s activities and identified QREs that had previously gone unclaimed. Working collaboratively with the internal team, KLR:
By managing both years at once, KLR made the process efficient, reduced the administrative burden, and ensured nothing slipped through the cracks.
Payroll Tax Savings: The company secured a $20,000 payroll tax credit by capitalizing on its final year of eligibility for the R&D payroll tax offset.
Federal Tax Benefit: Over $400,000 in previously unclaimed qualified research expenses (QREs) were identified and documented.
Audit Protection: KLR amended past returns without triggering audit risk, ensuring compliance and accuracy.
Strategic Tax Planning: The company laid the foundation for future tax strategy conversations as it scales and continues innovating.
Our specialists help businesses uncover and claim what they’ve earned—because when it comes to complex tax strategy, experience matters.
