Implementing Best Practices:
10 Things your R&D Tax Specialist Should Be Performing with your Research and Development Tax Credit Studies
Now that the Research and Tax Credit is permanent, it is important to ensure that your company is utilizing the R&D Tax Credit to the best of its abilities. A crucial component of this is making sure that your analysis is being handled properly and with the use of best practices.
There are several ways for R&D practitioners to do this:
- Hold annual meetings with SME’s
- Evolve the study process each year to better meet your client’s needs and marginalize your footprint on their time
- Breakdown the silos between departments to cut down on interdepartmental confusion and frustration by involving all parties from the outset of the project
- Educating everyone annually about changes in the laws and regulations for the Research and Development Tax Credit
- Have these conversations early enough in order to establish a collaborative environment from the outset of the project and allow for more accurate, timely information
- Loop in as many departments as possible that may offer pertinent information and have annual in person meetings
- Establish expectations with project milestones and deadlines
- Gather data in real time or as near as possible while the information is fresh in the SME’s mind
- Be transparent about the IRS’s need for contemporanous documentation and explain how this must be connected to the development process
- Be sure to inform your client that we are relying on their testimony and will need to substantiate it as much as possible in the event of an audit
- Provide as much education to SME’s on the front end as possible as they could be potential witnesses in the event of an audit
Indago’s team of CPAs, engineers and strategists are dedicated to ensuring that your companys’ Research and Development Tax Credit is properly maximized and claimed. As a company, Indago consistenly practices the above tactics on a day to day basis.