https://www.irs.gov/businesses/research-credit

Under Treasury Regulation § 1.41-4(d), a taxpayer claiming the research credit must retain records in sufficiently usable form and detail to substantiate that expenditures claimed are eligible for the credit. 

Never claimed R&D credits

L&V employs a phased R&D tax credit work plan.

• Phase 1 -  Feasibility: The first phase estimates the benefit based on our initial discussions, interviews and survey of the existing documentation.
• Phase 2 – Kick off: Identify QREs and QRAs for calculation of the tax credit and document the actual R&D tax credit by Project or Cost Center approach.
• Phase 3 – Implementation: Go forward plan for future R&D strategy.
• Phase 4 – Measurement: Measure sustainability for financial statement (ASC 740-10) purposes.

Already claimed R&D credits

L&V assists companies determine whether they could utilize and sustain R&D credits:

• Cost & Calculation Review: L&V reviews for errors and misclassifications, including those caused by use of outdated files and regulations. Focus on understated, missed, and non-qualified costs, to enhance both the credit’s materiality as well as sustainability.
• Documentation Review: L&V assess whether and how tax examiners will accept or disallow claimed credit with supportive documentation and make recommendations to improve the process.
• Systems & Technology Review: We assist companies develop and implement procedures and technologies to identify, document, and calculate future credits efficiently and effectively.
•  Exam & Appeals Support:  L&V's R&D team leverage legal, accounting, engineering, and scientific experience to support R&D credits on exam and at appeals.
•  ASC 740-10/FIN 48 Review: We identify optimal units of account, recognition, measurement, and supply appropriate documentation.
• Global R&D Benefits Review: We help companies with operations outside the U.S. claim and support non-U.S. R&D benefits including locations of new R&D and manufacturing operations.

For further information, fill out the evaluation form and submit to L&V