Apparel

Background

This California based company manages a portfolio of high profile clothing brands.

As a multimillion dollar operation, in addition to having talented internal financial management, the company works with some of the most respected outside accounting resources in the country. However, neither of them had the time or unique experience and expertise to “step back” and look at the company’s creative, development and production process as an “R&D” company.

Solution

The only solution to maximizing R&D tax benefits was to engage Tax Credit Co. to totally “immerse” themselves in every aspect of production for this client’s broad line of products.

Using a team of R&D experienced analysts, statistical specialists, and tax counsel, Tax Credit Co. worked alongside design, engineering, production, and financial management to detail every facet of the product development process. From design and pattern making, to sourcing materials, trimmings and accessories, to sample production, testing different ”washes” for jeans, to building the precision tech packs for manufacturing, Tax Credit Co. was able to document the company’s complete process to capture the most substantial R&D tax credit.

Tax Credit Co. quality control analysts then meticulously assembled “audit ready” documentation packages that financial management could use with 99% confidence for any audit challenge.

Results

Tax Credit Co. delivered an R&D tax credit that is among the largest awards in the apparel business.

However, the strategic and tactical knowledge gained from such an extraordinarily complex study has the potential to benefit apparel businesses of any size.