By Juliann Francis
Small manufacturers, architectural and engineering firms and software makers may be losing out on $1.2 billion in research tax credits annually because of filing difficulties and a lack of awareness about the benefits.
Small businesses often can’t claim credits meant to promote research and development because the Internal Revenue Service documentation is too hard to complete, according to a Bloomberg Government study (subscription required) released today. Many firms also don’t know the credits exist, and IRS rules can make it hard for small businesses to amend tax returns to use the credits once they learn about them, the study found.
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