Specifically designed to address this year's new federal tax codes, the platform will help to ensure that businesses not only remain in compliance but are able to maximize R&D deductions and optimize their tax strategy.
SAN FRANCISCO, Feb. 14, 2023 /PRNewswire-PRWeb/ -- Neo.Tax, an early leader in simplifying and automating taxes for startups and businesses, today announced the launch of Neo.Tax 2023, a new software update to its signature platform. Specifically designed to address this year's new federal tax codes, the platform will help to ensure that businesses not only remain in compliance but are able to maximize R&D deductions and optimize their tax strategy.
Neo.Tax 2023 was built in response to The Tax Cuts and Jobs Act of 2017, which was signed into law and included a five-year provision that would completely change the way R&D expenses could be deducted. Officially in effect as of January 1, 2022, for tax year 2022, which companies will file taxes for in 2023, this change means that R&D expenses can no longer be subtracted from revenue and must be spread out over a period of time - five years for U.S. domestic-based activity and 15 years for international activity. This change impacts all businesses and startups, who can no longer deduct expenses in the year they were incurred, and now may be left with a tax bill despite not yet reaching profitability.
"While we're disappointed in congress' failure to stop this tax change from going into effect, our customers are grateful that we've anticipated this tax change and built a solution to optimize it. The good news for businesses is that there is a solution to this – and it's quite good," said Ibrahim, co-founder and CEO of Neo.Tax.
Neo.Tax 2023 ensures that its platform is not only compliant with these changes but is able to optimize R&D tax credits and save businesses money. Prioritizing accuracy and ease of use, Neo.Tax 2023 guarantees that all claims are reviewed by the Neo.Tax tax experts so they can be filed with the confidence of knowing that these returns are accurate. These tax credits were historically more relevant for smaller startups, with less than $5m in revenue, but are now valuable and relevant to all companies with sizable R&D spend – primarily technology businesses.
"We've spent a lot of time planning for the eventuality of the new R&D tax rules and we are excited to share it with business owners," said Ibrahim. "Our goal is to offer solutions that not only address the new tax change but will optimize a company's tax strategy against it and give businesses an easy-to-use simplified product with the accuracy that business leaders deserve."
Since its inception, Neo.Tax has automated preparing the R&D Tax Credit for startups and accountants. Their software has simplified the complex process of applying for Federal and State R&D Tax Credits, saving businesses tens of millions of dollars.
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About Neo.Tax
Neo.Tax is building the easiest and most accurate tax software for businesses. Their first product simplifies the complex process of applying for the R&D Tax Credit, putting hundreds of thousands to millions of dollars back into each company's pocket. This is the first step towards turning taxes into a modern advantage for businesses. Neo.Tax's approach is reflected in their founding team; a Stanford Ph.D. in Machine Learning automating the brain of a former IRS Agent, productized by a former Intuit product manager. For more, visit Neo.Tax.
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SOURCE Neo.Tax
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