Best Practices: Now that it’s 2023, we just wrapped up our 2021 study; what do you think we could do now to improve our process before next year?

Jason Massie answers:

December and January are great times to think strategically about improving your R&D process. Below are some of my tips:

  • We anticipate that 2023 will see much more about refund claims, potentially some Form 6765 changes, a possible push for regulations and other guidance regarding documentation, federal and state controversy matters, and new case law.
  • The IRS has already said they will soon come out with new guidance related to the R&D Tax Credit. We anticipate that this will be related to documentation guidelines.
  • Act now by assessing the gaps that currently exist in your company. We urge you to sit down in the next few weeks to determine where you are now and where you need to go; this will help to show what steps you need to take along the way.
  • Based on the gaps you’ve identified, meet with your key innovation stakeholders to discuss them. Talk to your CIO, your technical people, and whoever needs to get on board with these issues to talk about the issues at hand. It’s important to anticipate some of these changes so you can plan for them in advance.
  • In talking with your internal teams, mention what the IRS needs you to gather and what your teams already have available, and then brainstorm ways to fix any open areas. Let these conversations be a discussion where you get your team’s feedback on making this process run more smoothly.
  • Develop a business component strategy. Some companies will have components that are so large that the IRS will immediately choose those to look at. We urge you to take the time now, on the front end, to break those components down into smaller subgroups. Consider how you can break these out to tell a better story.
  • Develop your people process and smart tools so that when the time comes, you’ll be able to pool the resources you need quickly. Step into your subject matter experts’ shoes and develop a process that you think would work the best for them. It is worthwhile to test these processes before you hit those critical times when you’ll need them.

Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.

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