R&D Tax Credit Workflow
Our workflow includes a scoping/consultation (Phase I) and the fieldwork for the full analysis (Phase II). The results of the analysis, along with all supporting documentation, are included in a comprehensive deliverable at the end of the analysis. The deliverable serves as an audit-ready package if the credit were to come under exam.
1
Initial Scoping & Consultation
Consult with leadership and accounting/tax personnel to discuss scope. Gather preliminary costing data for estimate purposes. Prepare estimated federal/state credit benefits.
2
Data Collection/Analysis
Accumulate and analyze costing data. Prepare database for surveys and fieldwork.
3
Surveys & Technical Interviews
Conduct survey meetings and technical interviews with subject matter experts (SMEs). Review survey results and qualitative documentation.
4
Calculation
Prepare federal and state qualified expense calculations. Review with key tax personnel and SMEs to confirm accuracy. Prepare federal and state credit calculations and relevant tax forms for filing.
5
Deliverable Package
Prepare an IRS audit-ready deliverable that includes: methodology memorandum, supporting expense schedules, business component memorandum, and contemporaneous documentation.
Section 174 Workflow
The Section 174 engagement runs seamlessly with the R&D Tax Credit engagement. Both workflows tend to begin and end at the same time, providing efficiencies for tax personnel and SMEs.
1
Initial Scoping & Consultation
Consult with leadership and accounting/tax personnel to discuss scope. Gather preliminary costing data for estimate purposes. Prepare estimated Section 174 expenses.
2
Data Collection/Analysis
Accumulate and analyze costing data. Prepare database for Section 174 model.
3
Account/Department Analysis
Review departments and accounts with key tax personnel and client SMEs to confirm expenses.
4
Calculation
Prepare Section 174 expense calculations. Review with key tax personnel and SMEs to confirm accuracy.
5
Deliverable Package
Prepare Section 174 expense schedules to include in one comprehensive deliverable.