Q1 2026 R&D Tax Credit Best Practice Roundtable

Recap of the webcast:

IRS R&D audit posture is softening, with a new LB&I ombudsman, more authority for field “rough justice” settlements, greater use of Fast Track, and less appetite for large or full disallowances based on technicalities.
Documentation and exam strategy are still critical: taxpayers need strong contemporaneous records, thoughtful use of IDRs, prepared witnesses, structured site visits, and well-designed samples, plus a built record in case of Appeals, as shown by recent IRS practices and George v. Commissioner.
Companies like Walmart are modernizing R&D processes and documentation at scale using in‑house tools (Teams, Slack, Power Automate, Alteryx, Python, AI copilots, BI).
States rapidly change R&D regimes, making state credits (especially in Texas, Minnesota, Iowa, Michigan, and others) as important to monitor as federal rules.