Research & Development Tax Credits

We review your activities and expenses to determine whether your activities meet the following four criteria and help build the supporting documentation to properly identify and calculate your claim.

Permitted Purpose

The activity must be intended to develop a new or improved product, process, computer software, technique, formula or invention.

Examples include developing or improving new functionality, performance, reliability, quality or significant reduction in cost.

Eliminate Uncertainty

The activity must be intended to resolve uncertainty related to:

• Capability
• Method for development or improvement
• Appropriateness of design necessary to achieve the desired result

Technical in Nature

The research and development activities must be “technological in nature” by virtue of relying on some element of the principles of hard science, defined as physical or biological sciences, engineering or computer science.

Process of Experimentation

The activity must include the evaluation of alternative solutions necessary to eliminate the technical uncertainty. Substantially all of the activities must represent elements of a “process of experimentation.” For purposes of the R&D tax credit, a process of experimentation is any development approach that is capable of analyzing more than one hypothesis or design alternative.

Our dedicated research and development tax team has deep experience helping clients sustain the most advantageous credits and incentives available while also minimizing the impact of research and experimental expenditure capitalization requirements. They conduct a meticulous analysis of your activities to ientify qualified research activities that are often overlooked or underclaimed.

Our documentation-based methodology addresses issues raised in recent IRS audits. We gather, analyze and summarize and tie relevant documentation to the activities and qualified research expenses claimed.

Our electronic report provides easy access to supporting schedules and documentation. The report provides lead schedules that are cross-referenced to supporting detail providing improved access to necessary documents in the event of an audit by a taxing authority.

Our analysis covers three phases:

1. Scoping Analysis

• Identify areas for opportunity along with potential exposure items
• Assess availability of required documentation
• Create a customized approach and workplan
• Provide cost / benefit analysis

2. Project Implementation

• Conduct detailed fieldwork necessary to quantify and qualify available federal and state RTCs
• Identify and compute R&E expenditures with amortization schedule
• Prepare audit-ready deliverable documenting industry specific RTC criteria as well as the methodology employed
• Complete project in 6 – 8 weeks, generally

3. Future Planning

• Assist in developing and implementing new processes or procedures to prospectively capture real-time documentation