No business looks forward to facing the IRS in court, but often the fight provides positive outcomes and sheds light on issues at hand. In the case of Shami vs. Commissioner, Alliant Group was able to prove that their taxpayer client performed legitimate activities at Farouk Systems, Inc, which develops and manufactures skin, nail and hair products. The court case also fleshed out important pro-business and pro-R&D credit insights that will inform future cases.

Alliant Group encourages companies to keep accurate records concerning efforts to improve processes and develop products. In this case, through records that were kept and Alliant Group’s extensive tax credit study, the company was able to show exact records for the R&D tax credits that were claimed for several tax years. These valuable tax credits allowed Farouk Systems to move 1,200 jobs back the United States.

Alliant Group identified 698 separate research projects, and the IRS agreed to the validity of all of them in accordance with IRC Section 41. Alliant Group highlighted supply costs and contractor costs that qualified for the R&D credits claimed by the company. Alliant Group was pleased to see that the court complied with the law’s provision for tax credits that apply to non-lab coat employees and certain executives.

Alliant Group is the only provider in the country with the depth of industry expertise on staff, plus proven track record of performing more than 10,000 tax credit studies. Clients turn to the experts at Alliant Group to provide invaluable guidance to maximize government-sponsored tax credits for businesses. Contact alliantgroup today at 800.564.4540.