Research & Development Tax Credit
Is your process effective and efficient in maximizing and retaining your R&D benefit?
"TCC's audit-ready approach and innovative technology are above the pack." - SVP, Global Tax, Fortune 500 Technology
Documenting Qualified Research Expenses can be unified and streamlined across your entire organization. For large organizations, those increased efficiencies allow for a deeper, broader level of substantiation, greatly decreasing audit risk.
We plan for the end from the beginning by involving tax controversy attorneys at the start of each engagement. Joining them are CPAs, industry specialists and engineers. That multi-focused team approach ensures we understand and relate to each of the different roles participating in the study.
Expect Audit Ready
Before a study begins, we document our proposed methodology, identifying risk areas along with mitigation strategies. Nexus is established between employee costs and projects with contemporaneous supporting documents demonstrating how qualifying criteria are met. The final deliverable provides an “audit roadmap” for the IRS. Key metrics are highlighted in our platform’s dashboard to provide easy access to QRE coverage, positions taken, and risk mitigation.
TCC’s proprietary R&D credit platform automates the time allocation process. Data is captured in the IRS preferred format and indexed to respond to any audit request. The real time dashboard allows users to measure study quality before audit. Areas of greater IRS focus (such as substantiation, sampling, level of attestation, contract research) can then be addressed.
Clarity with Quality and Risk Scoring
We are committed to providing our client stakeholders with the “metrics that matter” at every point of the project lifecycle. Our proprietary 3-gate review process requires (Gate 1) sign-off on a substantiation methodology before fieldwork commences. A discussion of the credit calculation, risk areas, and the running of “what if” scenarios (Gate 2) is required before the credit is filed on a return. As a final step (Gate 3), we conduct a review of the substantiation available to support the R&D credits.
Achieve True Collaboration
We believe valuable consulting is based on an exchange between the service provider and the organization; we do not believe in “black-box” solutions. Our goal is to provide best-in-class technical expertise and services to our clients, which in turn will allow our clients to make the best possible decisions for the organization. Our process, deliverables, and tools ensure that our clients have complete visibility into the TCC process, and that, at key critical milestones of the project, the client has enough information to decide how to move forward.
Identifying all federal and state qualification opportunities across all business units through a multi-pronged approach interacting with selected leaders and analyzing preferred data sets.
Large Business & International Entities – ASC 730 Directive (entities with $10 million or more, total assets)
Small Business/Startups – Payroll Tax Offset (entities with less than $5 million in gross receipts)
We have a simple philosophy for R&D: “Be effective. Be efficient.” It drives our work in every action we take, and helps us keep your R&D credits cost-effective and protected against audit.
When you’re considering an R&D service, ask these key questions:
- How will this methodology succeed in IRS examination?
- What is the total cost of realizing this benefit?
- What is the impact to business operations?
With audit protection, exceptional ROI, and a streamlined approach, the TCC service package takes you from ideation to credits earned seamlessly and effectively.
Our R&D Methodology
Our proprietary 30-step process documents and substantiates your eligible R&D credits using a gate-based review process that ensures the highest level of quality and audit protection. We handle the complexities to make R&D work for you, with customized methodologies and deliverables tailored to your business.
- Maximize and sustain R&D credits
- Minimize administrative burden
- Manage risk mitigation
Our process creates the required nexus between qualified research expenses (QREs) and business components, even when no formal time tracking exists – a critical issue for the IRS.
Our Proprietary Process
Our 30-step process is vetted to stay current with IRS requirements. Developed by a former Big 4 IRS controversy leader specializing in R&D tax credits, the design incorporates input from an external consulting firm of ex-IRS engineering territory managers.
TCC’s unique gate-based reviews are based on quality and transparency. Our collaborative approach involves you, as client stakeholders, in driving decisions regarding methodology, scope of study, and risk tolerance.
- Gate 1: Methodology review
- Gate 2: Quantitative review of calculation with risk-based analysis
- Gate 3: Final deliverable review
Already claiming a credit? Our experts can review your credits and documentation to evaluate opportunities to optimize your claims and audit process.
What You Can Expect
Quantitative and Qualitative Approach: Our team will speak with your subject matter experts to calculate the R&D credit, and support the credit by preparing technical reports demonstrating qualification.
- Audit Roadmap: We’ll provide a carefully designed audit roadmap that enables the IRS to verify your claim. It is flexible enough to be easily adapted if the IRS imposes its own independent audit plan.
- Mandatory IDR response: Your business will receive a set of customized deliverables, including a completed Mandatory IDR Response – something you won’t find anywhere else.
Experts At Every Stage
We embed controversy experts in each project and follow a stage-gate review to develop a sustainable claim. Our team will present risk analyses and alternative credit scenarios to ensure that you can make an informed decision based on your company’s risk tolerance. We will provide recommendations for the future and work with you to transfer the methodology in-house if desired.
Your dedicated R&D group will include a set of cross-functional specialists assigned to every engagement:
- R&D and controversy attorneys
- R&D technical and industry specialists (e.g. engineers)
- R&D tax specialists
All projects include oversight from senior managers assigned to every engagement, all of whom have at least ten years of Big 4 experience.