Success Stories

Continuing Business

(These success stories are real projects. The information has been generalized to protect client confidentiality.)

Entity X is a multi-national manufacturer providing goods for a major industrial sector. Entity X has recently expanded operations by acquiring an existing business in the United States. Entity X was introduced to The Miller Group by a vendor of the newly acquired business. Entity X was familiar with IRC §41 and believed the new acquisition would be treated as a Start-Up Company for purposes of the Research Tax Credit. Entity X thought that it would be prevented from achieving a Research Tax Credit by a high Fixed Base Amount under the Start-Up definition.

With extensive experience in this area, The Miller Group was able to demonstrate that the acquisition could be treated as a Continuing Business under IRC §41. Consequently, the operations of the acquisition were able to qualify for substantial Research Tax Credits under the Continuing Business definition.

The Miller Group completes Research Tax Credit projects for Entity X addressing all US operations.

It is possible for most acquisitions to be treated as Continuing Businesses under IRC §41, even under a variety of methods of acquisition (Section 351, Section 368, Section 338(h)(10), etc.). In many cases, this fact greatly expands the Research Credit opportunity for growing businesses.