How does STRIKE calculate the federal and state R&D tax credits?
For the most part, STRIKE works in a 4-Step Process:
- Preliminary Analysis (Discovery and Credit Estimation)
- Credit Calculation
- Qualitative Analysis: an activities-based analysis to gather and review supporting project documentation) and
- Quantitative Analysis: Analysis of financial documents to aggregate qualified research expenses (“QREs”) using various methods, including interviews, surveys, questionnaires, and proprietary tools. - Documentation and Substantiation of the Credits (deliver of an audit-ready deliverable, including package of our calculation and methods)
- Audit Support (if the credits were to ever be challenged by the IRS or state, we stand by your side).
Depending on whether a company has previously claimed the R&D tax credit or not, our methods could vary. Also, since every R&D engagement is unique and has varying levels of complexity, some steps can be eliminated or adjusted as necessary.
