Why Thousands Overpay in Taxes and How To Fix It With Martin Gamez

Martin Gamez is the Founder of Tax Formulations, a firm that helps businesses and CPA firms unlock millions in tax credits while reducing audit risk and streamlining compliance. With over 25 years of experience in federal and state incentives, he is particularly adept at navigating the often misunderstood R&D tax credit. Martin has collaborated with startups and large enterprises across industries such as technology, engineering, manufacturing, life sciences, and software. His practical, hands-on approach makes complex tax strategies easy to understand.

Here’s a glimpse of what you’ll learn:

• [2:36] How Martin Gamez discovered his niche in tax credits and state incentives after exploring multiple accounting paths
• [4:59] Surprising industries like food, beverage, textiles, and small manufacturers that qualify for R&D tax credits
• [7:17] The IRS’s four-part test for determining legitimate R&D activities businesses often overlook
• [10:13] Common mistakes businesses and providers make that increase audit risk when filing R&D tax credits
• [16:46] How Martin maximizes client savings by capturing wages, supplies, and the contractor expenses many miss
• [27:41] Why AI and technology will reshape the R&D tax credit landscape and how Martin is preparing for it

In this episode…

Many business owners unknowingly leave thousands to millions of dollars on the table simply because they don’t fully understand how to leverage specialized tax incentives. With complex rules, changing regulations, and widespread misconceptions, navigating tax credits can feel overwhelming. How can businesses avoid costly mistakes and claim the credits they rightfully deserve?

According to Martin Gamez, a tax consultant with over 25 years of experience in federal and state incentives, many companies wrongly assume they don’t qualify for R&D tax credits or fail to document their activities correctly. He highlights that industries far beyond tech and pharmaceuticals — including food, textiles, and manufacturing — often engage in qualifying research and development without realizing it. By carefully analyzing wages, supplies, and contractor expenses while ensuring IRS audit readiness, businesses can unlock significant savings and minimize risk. Martin explains that a hands-on, detail-oriented approach is crucial to maximize every eligible dollar.

In this episode of RAW Spotlight, host Victor Huynh sits down with Martin Gamez, Founder of Tax Formulations, to talk about why so many businesses overpay in taxes and how to address the issue. They discuss common misconceptions about R&D tax credits, how to qualify even without labs or scientists, and critical documentation mistakes to avoid. Martin also shares insights on cost segregation and how AI is shaping the future of tax consulting.

Resources mentioned in this episode:

• Victor Huynh on LinkedIn

• Emily Au on LinkedIn
• Ready Artwork
• Martin Gamez on LinkedIn
• Tax Formulations
• The Goddess Mercado Website | Facebook | Instagram

Quotable Moments

• “I was able to speak with CEOs, CFOs, heads of large companies and got to know R&D.”
• “A lot of companies or manufacturers do the process not knowing they’re actually doing R&D.”
• “We want to capture everything that can be potentially on the table and not leave anything.”
• “We model our report according to that audit report, so it’s well-rounded and comprehensive.”
• “After that, I had a different perspective of life, but sports have been a backbone.”

Action Steps

1. Identify all qualifying R&D activities across departments: Many companies overlook eligible work outside core engineering, missing out on significant tax credits.
2. Thoroughly document R&D processes and expenses: Accurate records help support claims and reduce risk during potential IRS audits.
3. Include all eligible wage categories in calculations: Beyond engineers, technical executives and qualified staff contributions can significantly increase total qualifying expenses.
4. Conduct cost segregation studies for property assets: Accelerating depreciation on building components can deliver immediate and substantial tax savings for property owners.
5. Partner with specialized tax consultants for complex filings: Expertise ensures compliance with evolving regulations while maximizing available federal and state incentives.

Sponsor for this episode…

This episode is brought to you by Ready Artwork, where we deliver uniquely tailored B2B digital marketing services to facilitate the long-term growth of your business.

At Ready Artwork, we combine data-driven insights with innovative design to help your business thrive in the digital age. From SEO and digital advertising to web development and email marketing, we have experts who help companies uncover growth in unexplored and extraordinary ways.

To learn more, visit readyartwork.com or get a free proposal. Let Ready Artwork discover your full potential.