Credit reaps big benefits for cabinet maker

Crystal Cabinet Works in Princeton, Minnesota, worked with Black Line Group to realize a tax credit in excess of $300,000. The company, a custom cabinet maker, has been manufacturing high-quality cabinets for more than 60 years.

The company’s Chief Administrative Officer was curious about the R&E Tax Credit and believed that the company would qualify. However, the company’s accounting firm did not have specialized expertise in the credit. After two years of discussing and thinking about the credit, the accounting firm recommended that Crystal Cabinet Works consult with the Black Line Group to determine if the firm was indeed eligible.

The Project

The Black Line Group began working with Crystal Cabinet Works to determine if the company was a good fit for the credit. After some preliminary information gathering, it was determined that the company would benefit from the tax credit as many of the projects completed would qualify. Black Line Group then gathered more in-depth information about the company’s processes and projects. A substantial amount of this information was obtained through interviews with various working groups within the company.

Following the information gathering, Black Line Group produced a portfolio of documentation regarding qualifying projects and Qualified Research Expenditures (QRE’s). This portfolio is essential to Crystal Cabinet Works should they undergo an IRS audit. Black Line Group then worked with Crystal Cabinet Works’ accountant to apply for the tax credit in the current and prior open tax years. Ultimately, the company qualified for over $300,000 in tax credits. In the future, the company has a roadmap designed by Black Line Group to continue filing for the tax credit on their own.

For More Information

For more information about the companies featured in this case studies as well as the R&E tax credit, please contact:

Scott Schmidt, Black Line Group
scott@blacklinegrp.com | <www.blacklinegrp.com>

Kurt Olson, TCS Consulting, LLC
kkolson@tcs-consult.com | <www.tcs-consult.com>