Okay, we’re not friends yet, but we should be, especially if you’ve ever found yourself paying what feels like an entire county’s GDP in taxes, all while wondering why your accountant didn’t help you find better ways to mitigate this burden (beyond what you can discover through a quick Google search).
I’ll admit it: I’ve always focused more on generating revenue than protecting it. But until I faced the daunting reality of nearly a million dollars in annual taxes, I never explored how to reduce my tax liability. Who has the time, right? I was swamped between managing a bustling household with two toddlers, juggling their unpredictable schedules and frequent bouts of illness, balancing a demanding career that often extended beyond the standard workday, and supporting my wife’s rigorous military commitments. Yet, I knew many business owners in similar positions were making the same decisions. This realization fueled my motivation to start NestWorth and make it easier for others.
Did you know there are approximately 7,000 tax credits available to businesses in the US? Politicians have been using these incentives to influence corporate behavior for years. However, navigating these tax breaks is like solving a Rubik’s cube blindfolded for many small and medium-sized business owners. The result? Many businesses end up giving Uncle Sam more than his fair share. Don’t let the taxman take the last slice of your profits! Here are some striking facts:
Utilization of Tax Credits: Although many U.S. companies attempt to utilize tax credits and incentives, less than 5% do so correctly due to a lack of expertise and time.
Distribution of Credits: Data from the California FTB shows that only about 15% of tax credits are filed by small businesses with gross receipts under $10 million. In comparison, businesses with over $1 billion in receipts claim around 77% of the total value of these credits.
Overpayment of Taxes: The Senate Small Business Committee found that 93% of small businesses overpay their income tax by more than $11,600.
Underutilization of Incentives: The Wall Street Journal reported that 19 out of 20 small and medium businesses eligible for tax incentives, such as the R&D tax credit, do not claim the benefits they are entitled to.
Disproportionate Claims: A Bloomberg Government study concludes that large companies claim a disproportionate share of R&D credits because many small businesses find the IRS filing requirements too difficult or are unaware they qualify.
Self-Censorship: Self-censorship is a major barrier, with small and medium businesses often feeling as if they’re being prevented from accessing the R&D tax credit by a velvet rope.
These statistics highlight the need for more accessible and understandable tax incentives for small businesses, ensuring they can fully benefit from the available credits.
We’ve developed a proprietary system to locate and qualify businesses for these valuable credits. If you qualify for a credit, we will find it. And we guarantee results—meaning unless we find credits and get you qualified, you don’t pay anything.
To be clear, we’re not calling you or your accountant clueless about tax credits. The reality is that there are too many tax credits to be aware of them all, they are often too cumbersome and confusing, and it’s extremely difficult to navigate them if/when you find them. Additionally, there’s a tendency for self-censoring, where businesses assume they don’t qualify and thus don’t even attempt to claim the benefits. I know this because I’ve been there. That’s why our software and team are here—to bridge the gap between the ever-growing black hole of small business credits and qualifications and ensure you uncover and reclaim every dollar you deserve.
To learn if you qualify for any credits, please click here
Written By Don Frazier
