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Paradigm Partners Releases New Website
FEDEX Corporation Wins Legal Argument on R&D Tax Credit for Internal Use Software
Valant & Company's Solid Rules...Can Ensure Success in Life, Business
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Paradigm Partners Newsletter

August, 2009
Greetings
 
Dear :
 
The purpose of our newsletter is to keep you informed and up-to-date on the latest regarding R&D Tax Credits, Cost Segregation, other tax related issues, Business Development and Personal Development.
 
If you find the Newsletter helpful, you may want to forward it to a friend.  Just click below.
 

Forward to a Friend

Paradigm Partners Releases New Website

On August 17, 2009, Paradigm Partners introduced our new website.  Karim Solanji, J.D., Director with Paradigm says "Our website had become dated and we had expanded our service offerings which were not reflected in our existing website.  Accordingly, we redesigned our website from scratch to make it easier to navigate, provide more information about all the services we offer and lastly have a contemporary look and feel."

The website will include Benefit Estimators for the R&D Tax Credit, WOTC (Work Opportunity Tax Credit), IC-DISC and Cost Segregation. In addition, it will contain pertinent news items regarding changes in any of the areas in which we specialize.
 
Take a look at our new website and let us know what you think:
 
Deadline to Complete an R&D Study
  
Paradigm will accept signed contracts until September 5, 2009 in order to complete an R&D study for the 9/15 deadline.
FEDEX Corporation Wins Legal Argument on R&D Tax Credit for Internal Use Software
 
Prepared by
Karim Solanji, J.D., Director
Mark Lauber, VP of Marketing
 
The United States District Court, Western Division, Tennessee, recently issued a ruling in favor of the claimant, FEDEX, and providing further clarification on the research tax credit.  The motion filed by FEDEX pertained to the legal standards governing the research credit with regards to internal use software.
 
The initial guidance in determining QREs (qualified research expenditures) for internal use software was found in the 2001 regulations and was very perplexing and later superseded.  The restrictive "discovery test" was also in the 2001 regulations, however, Treasury repudiated the "discovery test" in the 2003 Final Regulations.
 
The 2003 Final Regulations did not address internal use software, so the IRS specified that taxpayers could rely on its guidance in the 2001 superseded regulations in a 2004 Announcement.  The IRS argued that if FEDEX used the guidance found in the 2001 regulations regarding internal use software that it was also bound by the "discovery test."  FEDEX argued that the IRS had abandoned the "discovery test" because it was inconsistent with Congressional intent and as such they could use the guidance on internal use software in the 2001 regulations and the "discovery test" would not need to be followed.
 
The court agreed with FEDEX and ruled completely in their favor. The case established the following positive results:
  • The "discovery test" is dead
    • This case and recent rulings in the McFerrin and Union Carbide have killed the "discovery test."
  • Taxpayers can rely on the  use of the favorable provisions in the 2001 regulations for claiming research tax credits for the development of internal use software.

 

Valant & Company's Solid Rules
Can Ensure Success in Life, Business

Editor's Note: Today we present the fourth installment in a special inspirational series from business performance improvement expert Laurence B. Valant, who specializes in growing profits for accounting firms and general business. Larry has been a frequent contributor to our newsletter, and again today, we feature excerpts from his new book, Stop Breaking These Rules! 100 Hard-Hitting Truths for Business Integrity and Performance. If you want more information or would like to order a copy of the wonderful new book, please visit www.valantco.com.

22 - Do the hardest thing first.

I have learned that the key to getting things done is to always (practically speaking) to complete the hardest things first. When I tackle the hardest tasks first, the rest is like a comfortable ski run downhill.
 
I make it a rule to start each day very early before the phone begins to ring so that I have quality, uninterrupted time to focus on prioritizing assignments. And, I clear my desk at the end of each day, without fail, and review schedules for those tasks that require more than one day to complete. I do not allow my performance to fall behind schedule and commitments.  
 
Facing tough challenges head on is a key characteristic of the successful, and tells those who observe us that we have the discipline to deliver when others may not. Consistency and reliability result from our discipline in undertaking and completing tough challenges. "You can count me" is the message we send.    

23 - The temptation is to over promise and this always results in under delivery.
 
When asked to do something, we too easily reply, "Yes, I think so."  When in fact a little thought would make it clear we are over-promising and therefore will not be able to deliver as promised. And to be sure, the person who made the initial, often unreasonable request will forget that the request was unreasonable and only remember your failure to deliver.
 
And unfortunately, this behavior is most likely to occur when and where we can least afford failure:  when we are under pressure from our bosses and our clients.
 
Before committing 1) clarify what is being required, 2) ensure necessary resources are available and 3) always add additional time for the unexpected. This pause for planning will make it almost impossible to over promise and therefore under deliver.
 
Pause before you commit. Learn to under promise and over deliver. You will earn a reputation for reliability and dependability. Not a bad way to be perceived.
 
24 - Don't live someone else's dream.

 
The world is filled with people who work for a paycheck, go through the motions and watch others make dreams come true.
 
I have always held a leadership role and learned very early in life that I cannot hope to have people join with me and follow my dream or vision unless I have defined and articulated that dream intelligently and with passion. I have also learned that living my own dream requires an ability to set goals, create a plan and follow through with determination!  People will follow a dream with purpose to it!
 
Every person who walks out their front door every Monday morning should ask, "Have I found fulfillment in my work world?  Can I can identify with the vision and dream of the company or individuals with whom I have chosen to align?  Do the leaders of my company or do I as a leader communicate my dreams and my vision with passion? "
 
If the answer to any of these questions is "no", you are living someone else's dream.
I hope you have benefited from our Newsletter.  Do not hesitate to contact me if you have any questions about what you heard or read in this Newsletter. 
 
Sincerely,

Mark Lauber
VP of Marketing
Paradigm Partners
281-558-1700 X-105

www.ParadigmLP.com