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Research & Development Tax Credit

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Our objective is to optimize credits claimed and sustained for past, current and future years, while minimizing the cost of doing so.

A&M’s RCIS team has the expertise and experience necessary to ensure that your research credit is correct, complete and certain.  We can help you identify overlooked opportunity areas within your firm where qualified credit expenses exist.  We provide the tools needed to complete the complicated credit calculation.  We assist you in preserving the documentation required to support your qualifying activities and departments.  Finally, we stand behind our services by providing audit support if you must respond to any IRS inquiries.  Over the past decade, we have helped numerous companies compute and sustain their research credits and deductions.

Our R&D services are designed to accomplish the following goals:

  • Develop an understanding of how your company develops and improves its products, processes, or software
  • Determine which stages of that process comprise qualified elements of a process of experimentation; and
  • Identify and document your qualified activities, projects, and costs in terms of those stages/elements
  • This approach is very effective because it ties your facts, your costs and activities, directly to the law.  This enables us to effectively create a “nexus” between your activities and expenditures, making it more likely that all of your R&D benefits will be identified and supported on exams.

The A&M Advantage

We offer services to a wide range of companies, including those who regularly claim R&D credits and those who have not claimed R&D credits previously.

If you have never claimed R&D credits, our approach is phased.  After each phase, you decide whether and how you want to proceed based on the results of the previous phase. Phases include:

  • Feasibility analysis (estimated benefit and cost to claim credits);
  • Calculate Actual Credits;
  • Assist Clients and CPA firms with Tax Form and Return Preparation;
  • Document Qualified Costs and Activities;
  • Develop & Implement procedures to identify, document and calculate future credits; and
  • Manage & Support exams and appeals;

If your company already claims R&D benefits, you may not require a full-scale “R&D Study.”  Our experience however, is that the majority of companies who have claimed R&D credits have not taken full advantage of the benefits available to them.

We can offer the following services, in addition to a full R&D Study:

Calculation Review

Our professionals have reviewed hundreds of calculations.  Because of law changes, using last year’s files, “start-up” rules, acquisitions, dispositions, etc., more than half of the calculations we have reviewed had errors, even when prepared by the biggest accounting firms.

Cost Review

Since costs are often qualified without reference to stages (elements) of the development process, they are often understated or missed altogether.  Using our approach, we have found companies significant additional qualifying expenditures.  We have also helped companies identify non-qualified costs erroneously included in their claims, costs which can taint an otherwise legitimate claim.

Proactive Future Planning

We can help companies develop and implement procedures and technologies to identify, document, and calculate their future credits efficiently and effectively.  These services focus first on making better use of a company’s existing financial, accounting and project-documentation systems to accomplish these goals, then focus on introducing new systems or procedures.

Federal & State Examination and Appeals Support

The IRS is prepared to hire more than 17,000 employees over the next few year and audits will increase dramatically as a result.  Leverage our expertise in managing a Federal or State Examination of any challenged tax position to avoid unnecessary issues and streamline the process.