Strike Tax Advisory was founded in 2019 in the tech mecca of Boise, Idaho, when Jonathan Cardella, a serial tech entrepreneur, grasped the power and potential of R&D tax credits. Having engaged a midsize firm to calculate and claim his own tax credits, Cardella was determined to make the process more seamless and frictionless. "The R&D Tax Credit is an $18 billion government-initiated incentive designed to drive innovation in U.S.-based companies," Cardella said. "We help them claim upwards of 15 percent for qualifying expenses with a success-based fee structure and no out-of-pocket costs."
Today, the tax credit consulting and advisory firm focuses on R&D Tax Credit and Employee Retention Tax Credit (ERTC) filing services. Strike co-founder and president Tyler Kem, former owner of Visionary Tax, and Casey Barka, director of R&D at Strike, lead sales and operations. A strategic partner network of financial service professionals co-market the company's services, extending service reach across the financial services ecosystem.
As he reflected on the last two years, Kem noted that Strike has over 200 clients and a network of over 100 partners. After returning over $50 million in credits to business owners, the company is beta testing its software product in preparation for a broader launch. "From the beginning, Strike's mission is to enable any business, of any size, to claim the tax credits they are entitled to—without any upfront costs," Kem said. "Our goal is to demystify the tax credit process and help innovators keep innovating and allow their companies to scale."
Strike's professional tax credit and consulting services are at par with the Big Four accounting firms, as well as national and regional tax specialty niche firms, Kem noted, and include unlimited hours of audit support and insurance-backed credit claims. The fast-growing company, with a staff of 25, signed its 100th client in June 2021, and its 100th partner in October of that year.
Looking ahead, Kem mentioned Strike is developing R&D and tax credit software to further streamline financial document management and information gathering. Noting that most CPAs and professional service providers do not focus on tax credit consulting, Kem said Strike is building its platform to simplify complex tax credit calculations and improve the user experience. "We're excited to roll out our tax credit software nationwide in January 2022," Kem said, "And Strike will continue to add new features, credits, and incentives over the following years." Kem went on to say that Strike works with financial services stakeholders, including business owners, CPA firms, accountants, attorneys and consultants, to remove barriers to understanding and rightfully claiming tax credits.
Each industry operates on specific activities, Kem stated, adding that these activities are the building blocks of a company's potential R&D Tax Credit from the IRS. He cited the following sectors as examples of highly qualified for receiving R&D tax credits: aerospace and defense, alcoholic beverages, architecture and engineering, food and beverage, industrial hemp and CBD, manufacturing, medical and pharmaceutical, and software and technology.
The ERTC is designed to support small business owners through government-imposed shutdowns. Additional federal legislation, passed in 2021 under the Consolidated Appropriations Act and the American Rescue Act, expanded ERTC eligibility. Impacted industries that qualify for ERTC include dentistry practices, restaurants, gyms, massage therapy clinics, nail and hair salons, real estate brokers, clubs and bars, boutique hotels, medical clinics, performing arts organizations, retail stores, day care centers, and travel related businesses, Kem noted.
Throughout ever-changing tax laws, Kem stated, Strike will always support and guide its clients. "Our experts are skilled in asking the right questions to qualify your company in a matter of minutes," he said. "It's generally not a question of if you qualify, but for how much."
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Tyler Kem, Co-Founder & President
Company Profile originally appeared in
The Green Sheet Issue 211201