R&D Tax Credit Documentation · $2,500 USD · One-Time Project
The Work Your
Team Has Done
May Qualify
Many technology companies are conducting research and development activity that qualifies for a federal tax credit — and either don't know it, or haven't built the documentation to support the claim. Feldspar identifies qualifying activity, categorizes the expenses, calculates the credit, and produces a documentation package that holds up if examined.
What This Delivers
A Documentation Package That Supports the Claim
The R&D tax credit is a meaningful offset for technology companies that spend on qualified research. The challenge isn't finding the credit — it's producing documentation substantial enough to survive scrutiny. Project descriptions that accurately characterize the technical work. Expense records sorted against the qualifying categories. A credit calculation that uses the right method and shows its work.
Feldspar produces that package. The project narratives are written to meet the four-part test used to evaluate qualifying activities. Wages, contractor costs, and supply expenses are categorized against the applicable rules. The credit is calculated using the method that produces the correct result for your situation. What you receive is a complete file, organized to support the credit claim if the IRS or another authority asks about it.
Qualifying activity identification
We review your development work and identify the projects and activities that meet the four-part test for qualified research.
Project narratives written
Written descriptions of qualifying activities that accurately represent the technical nature of the work.
Expense categorization
Wages, contractor costs, and supply expenses sorted against the qualifying expense categories with supporting schedules.
Credit calculation included
Credit amount calculated using the applicable method — regular credit or alternative simplified credit — with the supporting calculation retained in the package.
The Situation
A Credit Many Companies Leave on the Table
Technology companies frequently underestimate the scope of activity that qualifies for the R&D tax credit. The work doesn't need to be basic research or involve scientific breakthroughs. Software development aimed at resolving technical uncertainty — building new capabilities, improving performance characteristics, figuring out how to make something work that hasn't been done before in your context — often meets the standard.
The more common issue isn't eligibility. It's documentation. Tax authorities examining an R&D credit claim will ask for written support — project descriptions that address the technical questions the work was trying to answer, employee records showing who spent time on qualifying activities, expense records categorized against the applicable rules. Without that documentation already built, a credit claim becomes difficult to defend.
The documentation work is manageable when done close to the year in question, while the project details are still accessible and the people involved can be consulted. It becomes significantly harder to reconstruct years later. Addressing it when the work is reasonably current is the practical path.
The Approach
Documentation Built to the Standard That Matters
The engagement produces a structured documentation package organized around the elements an examiner would look for — not a summary of what you did, but a substantiated record of why it qualifies.
Activity Review
We work through your development projects with the four-part test in mind: permitted purpose, technological in nature, elimination of technical uncertainty, and process of experimentation. Activities that meet the standard are identified; those that don't are noted clearly so the package doesn't overstate the claim.
Project Narratives
Written descriptions of qualifying projects that address the technical questions the work was attempting to answer, the uncertainties involved, and the experimental process used. These narratives are the core of the documentation — they're what an examiner reads first.
Expense Categorization
Qualifying expenses are sorted into the applicable categories — wages for employees engaged in qualified research, contractor costs for research conducted on your behalf, and supply expenses directly consumed in the research process. Each category is supported by the underlying records.
Credit Calculation
The credit amount is calculated using the method applicable to your situation — the regular credit method or the alternative simplified credit. Both methods and their results are shown, allowing your tax preparer to use whichever produces the more favorable outcome.
Complete Documentation File
The output is a complete, organized package — project narratives, expense schedules, employee records, and the credit calculation — in a format that can be produced to an examiner or provided to your tax preparer as a ready-to-use file.
Working Together
How the Project Unfolds
As a defined project rather than an ongoing engagement, R&D credit documentation has a clear beginning, middle, and end. Here's what that looks like.
Scoping Call
We review the tax year in question, the nature of your development work, and what financial records are available. This determines whether the engagement is a good fit and what the documentation process will involve.
Activity Review
We go through your projects and activities with technical staff or documentation as the source. Qualifying activities are identified and mapped against the four-part test. We'll ask questions — the answers inform the written narratives.
Documentation Build
Project narratives are written and reviewed with you for accuracy. Expense records are gathered and categorized. The credit calculation is prepared showing both applicable methods. Draft documentation is shared for your review before finalization.
Final Package
The completed documentation package is delivered — organized, cross-referenced, and ready to be provided to your tax preparer alongside your return. You also retain the file for your own records in the event of examination.
Investment
A One-Time Project at a Fixed Fee
The R&D credit documentation engagement is priced as a flat project fee — one tax year, one complete documentation package. The fee reflects the actual work involved: activity review conversations, narrative writing, expense categorization, and credit calculation.
This is structured as a defined project with a clear scope. If your situation involves multiple years, very large numbers of qualifying projects, or unusual complexity in the expense records, that would be discussed during the scoping call before any work begins. The project fee applies to standard scope; anything materially different would be agreed separately.
One-time project fee · Per tax year
What's Included
- Qualifying activity identification and four-part test evaluation
- Written project narratives for qualifying activities
- Qualifying expense categorization (wages, contractors, supplies)
- Credit calculation — regular and alternative simplified credit methods
- Supporting schedules for financial statement and tax return use
- Complete documentation file organized for examination readiness
Who This Is For
Technology companies that have conducted qualifying research and development activity — typically software development, hardware engineering, or similar technical work aimed at resolving uncertainty — and want the documentation in place to support the credit claim.
Particularly relevant for companies claiming the credit for the first time, companies whose existing documentation is thin, and those preparing for an audit where the credit is on the return.
Timing
The engagement works best when conducted close to the tax year in question — within a year or so, while project records are current and team members involved in the work are accessible for conversations.
It can also be done for prior years, though reconstruction of older project details takes more effort and the resulting documentation may be somewhat thinner. If you're looking at multiple prior years, that's worth discussing during the scoping call.
The Framework
What Makes Documentation Sufficient
The Four-Part Test
To qualify under Section 41, research activities must meet four criteria: the activity must relate to a trade or business (permitted purpose); it must rely on hard sciences or engineering (technological in nature); it must be conducted to discover information that eliminates technical uncertainty; and it must involve a process of experimentation. Each project narrative is written to address these criteria specifically.
Qualifying Expense Categories
Three categories of expense qualify: wages paid to employees for qualified research activities (including a portion of supervisory wages); amounts paid to contractors for qualified research conducted on your behalf (65% of such costs qualify); and amounts paid for supplies directly consumed in the research process. Getting the categorization right matters — both for the credit amount and for the defensibility of the claim.
Calculation Methods
There are two methods for calculating the regular research credit. The regular credit method compares current-year qualified expenses to a historical base amount. The alternative simplified credit (ASC) uses 14% of qualified expenses above 50% of the average for the prior three years, and is more accessible for companies without complete historical records. Both are calculated and compared in the package.
Realistic Expectations
The R&D credit is a legitimate and commonly claimed credit, but the amount varies significantly based on the size of qualifying expenditures and which calculation method applies. Documentation projects typically take three to six weeks from initial scoping to final package delivery, depending on the complexity of the activities and how readily the underlying records can be gathered.
Our Commitment
Straightforward About What We Find
The goal of this engagement is a documentation package that accurately represents your qualifying activity — not one that stretches the characterization of what your team did to maximize the credit amount. Documentation that overstates the claim creates a different kind of problem. We'll tell you clearly what qualifies and what doesn't, and the package will reflect that honestly.
Accurate Characterization
Project narratives describe what your team actually did. Nothing is embellished to make activity appear to qualify when it doesn't.
Coordinated with Your Tax Preparer
The documentation package is designed to hand off cleanly to whoever prepares your return. We're available to answer questions from your preparer about how the package was assembled.
Scoping Call First
We discuss your situation before any work begins. If the engagement doesn't make sense for your situation, we'll say so during that initial conversation.
Next Steps
A Defined Path to a Complete Package
The project has clear stages — it starts with a conversation and ends with documentation you can use.
Reach Out
Use the contact form at feldspar.world or write to [email protected]. Let us know the tax year you're looking at, a brief description of your development work, and roughly how many engineering or technical employees you had during the year.
Scoping Call
We follow up within one business day to schedule a short call. We'll look at the nature of your development activities, available records, and whether the standard project fee applies to your situation. This is also where we assess whether your work is likely to produce meaningful qualifying expenses before committing either of us to the project.
Documentation Work
Once we agree to proceed, we work through the activity review, expense categorization, narrative writing, and credit calculation. We'll check in with you at key points — primarily during the activity review and when draft narratives are ready for your review.
Package Delivery
The completed documentation package is delivered as an organized file — narratives, expense schedules, and credit calculation — ready for your tax preparer and for your own retention. The project is complete at that point; no ongoing engagement is required unless you'd like to address additional years.
Get Started
Your Development Work May Already Qualify
The scoping call costs nothing. If your activity qualifies and the documentation is worth building, we'll know after that conversation. Tell us what your team has been working on.
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