Given the high profile of the Research Tax Credit, examinations and audits are often conducted by federal or state authorities. The DST team provides support and assistance to our clients with examinations.
An impressive track record for success
Our track record is impressive. Our team’s approach is to focus on the facts of the case, using case law and legislation to support the taxpayers case. Our techniques have resulted in strong positions using evidence and contemporaneous documentation to support the claim. Having DST Advisory Group on your side will provide confidence.
How we best serve you
Our Process
Step 1 – Assessment and Scheduling
Where applicable, DST will conduct a preliminary analysis in order to estimate the Research Tax Credit (RTC) benefit available under the Agreement Period. The deliverable from this step will include a “Project Initiation Letter” which may also include a proposed work plan outlining the action items to accomplish the remaining steps, and a time frame for completion.
Step 2 – Facility Site Visit(s)
This step will involve strategic site visit(s) and/or conference calls with Subject Matter Experts (SMEs) of the Client, as approved by the Client. The deliverable from this step may include Site Visit Summary of Findings Report(s).
Step 3 – Analysis of Qualified Research Activities (QRAs) and Qualified Research Expenses (QREs)
This step will involve a review of the activities, expenditures and contemporaneous documentation under the Agreement Period. The review will include qualification and exclusions found under IRC Section 41, regulations and case law. This step will also include the preparation of DST tools for documentation of QRAs, QREs and contemporaneous documentation.
Step 4 – Preparation of RTC Calculations & Forms
This step will involve the preparation of the necessary Federal & State RTC calculations for tax return filing purposes (or for tax attribute schedules). DST will provide support with regards to any review of such information by Client’s external tax return preparer, where applicable. Such support will be considered part of Schedule B – Fees for Services Rendered.
Step 5 – Technical Nexus
DST will develop an RTC framework that establishes “Nexus” among qualified activities, expenditures and corroborative records. The Nexus framework will be outlined in the Legend Narrative.
Step 6 – Project Management and Review
The DST management team will oversee project implementation, review and delivery, where applicable.
