Talking About Tax Season. 

Most entrepreneurs don’t start their business in order to worry about maintaining compliance with ever-changing local, state and federal regulations. And they certainly don’t dream of spending their days thinking about taxes—unless, of course, the business they start happens to be an accounting firm.

Tax-related rules and regulations are constantly evolving and can be confusing—especially with all the shifts to the business landscape as a result of the pandemic. Because of this ever-changing tax and regulatory landscape, it is easy for a small or medium-size business (SMB) to make a tax misstep.

Companies across many industries often qualify for the federal research and development (R&D) tax credit. However, claiming the R&D tax credit requires backing up your eligibility with the right documentation. Companies sometimes misunderstand what constitutes required documentation for the R&D tax credit. A simple general ledger line item that says “research expenses” will not do. Here we take a closer look at some “Do’s and Don’ts” when it comes to R&D recordkeeping.

The business name control code is an identifier the IRS creates as a sequence of alphanumeric characters for a business based on its legal name and associated TIN or EIN.

What is a business name control code?

All businesses need to have a unique identifier. This is where the business name control code becomes relevant.

The IRS is a stickler for precise recordkeeping, as HR managers know. And when it comes to the electronic filing of corporate tax returns and forms, the agency ensures that the information on these documents corresponds with the correct business entity.