Research and Development Case Study
Under 50 Person Software Firm Gains Six Figure Tax Benefit
Background
The software development process quintessentially defines the IRS’ qualifications for Research and Development Tax Credits.
Our client, a relatively small business, wasn’t confident with their general accounting firm’s experience in managing the subtleties needed to maximize, and potentially defend, qualified R&D credits for their breakthrough vendor management solution for the energy industry.
Solution
A Tax Credit Co. R&D specialist team, consisting of field analysts, statistical specialists, and tax counsel, did a “deep dive” into the actual software development process. Working alongside client technical management, Tax Credit Co. meticulously vetted the role of each employee, from concept, to writing and debugging code.
Then Tax Credit Co. quality control analysts meticulously assembled an “audit ready” documentation package that financial management could use with 99% confidence for any federal or state audit challenge.
Results
This technology firm with fewer than 100 employees captured a six figure federal and state benefit over a 3 year period, giving them the opportunity to weather challenging economic conditions.
