The Research & Development (R&D) tax credit is one of the most significant domestic tax credits remaining under current tax law – a substantial tool for maximizing a company’s value.
Because the R&D Tax Credit is a resource-intensive and highly specialized process, we have discovered that many companies simply cannot develop and substantiate the necessary R&D documentation. Additionally, another challenge is capturing all R&D opportunities that currently exist.
The SourceCorp Research & Development Tax Services team is comprised of full-time, highly experienced and uniquely qualified R&D professionals. We can help improve your benefits and limit your exposure.
Why CPAs and Their Clients Choose SourceCorp:
• Trusted, experienced, reliable, and financially stable – empowering accounting firms for 25-years
• Sarbanes-Oxley compliant
• We build long-term relationships with our clients
• One-source resource
• We will find the maximum benefit
• Complimentary review
• Complimentary audit assurance and support
• Fixed fee billing
• Responsive and responsible
• 100% guarantee
SourceCorp will provide our comprehensive R&D Study Process, experience, and reporting capabilities to complete the entire project on time and on budget. Additionally, we provide complimentary estimates. Our capabilities will result in significant business benefits by providing a proven, consistent approach using one company throughout the entire project, an assigned top-tier SourceCorp R&D team working hand-in-hand with the client from the beginning of the project through completion, increased cash flow, accelerated depreciation expense deductions, and client confidence – we stand behind each of our studies by providing complete IRS audit support, which includes 40 complimentary hours with every R&D study we perform. Additionally, we provide a 100% guarantee.
1. Formal Estimate Phase – Complimentary Assessment
a. Meet with technical personnel onsite to introduce and discuss the R&D Tax Credit and its applicability – discuss industry qualifiers
b. Tour the multiple facilities and discuss financial information such as past tax returns, net sales and organizational chart (Information Request Document provided separately)
c. Provide an estimate of the federal and state tax credits for each open tax year
d. Schedule conference call with tax director(s) to determine usability of the credits, finalize project scope
e. Present engagement letter and fee proposal
f. Complimentary onsite evaluation typically runs 2– 3 weeks, overall estimate phase takes 3 – 4 weeks
2. Formal Implementation Phase
a. Sign formal engagement letter
b. Assignment of experienced R&D professionals: we will have two (2) people working at your location for approximately one week
c. Determine project scope based on investigatory phase evaluation and results
d. Evaluation of project accounting records for internal wage/hour support purposes
e. Evaluation of accounting records for any potential expended material purposes – determine reasonable supply accounting methodology
f. Evaluation of internal accounting records for contract service purposes
g. General evaluation of primary accounting documentation for various State qualification requirements if applicable
h. General Product Development Cycle Questionnaire – for all major product lines
i. Evaluation and formal question & answer (Q&A). Will need to interview management of various departments (i.e. R&D, Plant Management, Senior Management, Engineering, Process Employees, QA/QC)
j. Based on preliminary review – will profile all product/process development departments (i.e., R&D, Engineering, Plant, QA/QC & Process) in general departmental qualification format
k. Process implementation as related to selected projects
l. Process implementation as related to selected process improvements
m. Request and evaluation of selected project documentation
n. Request patent activity – applied for and received
o. Formally request interviewee(s): engineering personnel for project profiling
p. Formally request Interviewee(s): senior management for indirect technical support project documentation
q. Formally request Interviewee(s): formal Interview to support employee survey documentation process
r. Request formal on-site evaluation to facilitate field-work completion
s. Taped Q&A’s are transcribed, edited, and evaluated by senior technical R&D engineer at SourceCorp location
t. Edited project, process & departmental Q&A’s are forwarded to client respective interviewee for final review, editing and approval
u. Preliminary R&D report completed and available for CPA review & management evaluation within 60 days (any factual or informational changes will be incorporated)
v. Issue final R&D report
All draft reports will be submitted between three and six weeks of receipt of relevant information.
Our R&D Reports are stand-alone products containing requirements set forth in the Audit Techniques Guide issued by the Internal Revenue Service for its field agents.
SourceCorp has a national Research & Development practice with the required knowledge and expertise to meet IRS requirements for R&D Tax Credit Studies. We have a strong commitment to quality and are proud to lead the field in IRS-accepted studies. SourceCorp understands that any good business decision is based on the cost versus the benefit received. Our client/partners recognize the combination of value and quality they receive, which results in a tremendous amount of repeat business. With completed studies resulting in the permanent difference of more than $50 million in taxes for our clients, SourceCorp has earned an unparalleled reputation as the highest quality provider in the R&D Tax Credit industry.