Success Stories

Fixed Base Percentage Determination

IRC §41 includes a requirement for determination of a Fixed Base Percentage for the tax payer. For most taxpayers their Fixed Base Percentage (once determined) is constant and defined by statute. Taxpayers with multiple entities must adjust their Fixed Base Percentage if they make a new acquisition (Note: see Continuing Business and Consolidated Filer)

Companies that were in business in the 1984-88 time period have increased potential for the Research Credit.

It is unfortunately common for companies to assume that they will be unable to determine their Fixed Base Percentage from historical information. The Miller Group has proven methodology for determining correct Fixed Base Percentages for companies in all industries.

It is common for tax preparers to misinterpret IRC §41, or find that they are unable to make an accurate Fixed Base Percentage determination, and to use the Start-Up percentage or the regulatory maximum of 16% to calculate a Research Tax Credit. Many tax payers are not receiving the Research Credit for this reason.

Over 4 billion dollars of Research Credit benefits annually go to the very largest US corporations with huge legal and accounting resources. Smaller companies often lack a mechanism for identifying and documenting their Research Credits. Determining an accurate Fixed Base Percentage is only one of the challenges of the documentation required by IRC §41.

The Miller Group has the resources and experience to achieve accurate, durable Research Credits for companies with qualifying activities. Research Credit projects completed by The Miller Group result in comprehensive, annual documentation that address all requirements of IRC §41. The documentation is structured to be self-substantiating under any review.

The Miller Group assists companies to achieve their Research Tax Credits for all available tax periods. We also advise our clients on proper methods to maximize Research Credits in future years.