Things to Include In Credit Documentation
Not many people till now are aware of credit documentation, but the fact is that research and development companies can achieve huge benefits out of this. Because they are not aware of this service, in most cases, they don’t even have any idea regarding the things needed for proper research and development tax credit documentation. In this post, we get an overview of the same and try to find out what kind of records and documents you need to claim the R&D tax credit?
Financial Information
According to those offers credit documentation services, the first thing to include is the entire financial information.
This would include everything like the information about wages paid to the employees directly involved in R&D and employees in direct supervision or support of R&D.
Records of Activities
The experts from a credit documentation company say that another thing to include is the records of R&D activities, preferably to separate accounts.
This would include everything such as bifurcating material and supplies into R&D and non-R&D purposes.
Other than this, copies of contracts with outside contractors showing who retains rights are also important.
One more very important thing to include is the time-allocation determinations with work plans, payroll records, steering committee meetings minutes and similar documentation.
Design Drawings
One more thing to include in R&D credit documentation services is the design drawing that would basically display various iterations.
The most important of them all are the blueprints, CAD reports (especially that document modifications), project progress reports and change orders.
You can even include marketing materials that substantiate a new product design.