174 Assistance

Overview

At MASSIE, we are uniquely positioned to assist clients with Section 174 classification. Our R&D experts support every type of 174 matter.

This support includes preparing analyses, creating work plans and workbooks, and drafting memorandums that support your capitalization methodology.

As a provider of R&D tax credit services to Fortune 500 companies, MASSIE brings deep experience with Section 174 issues. Whether you are just beginning or refining an existing approach, MASSIE serves as a trusted advisor throughout the process.

Our goal is simple. We help you move forward with clarity and confidence.

What is the process like?

We approach every Section 174 matter with the end in mind. That end goal is clear, well-organized workpapers that are easy to follow and explain.

Architecture and Analysis Phase

We begin with a phase we call Architecture and Analysis. During this phase, MASSIE works closely with your finance team.

We focus on how research and experimentation costs are captured, tracked, and budgeted for future periods. This understanding shapes the rest of the process.

Financial Review and Cost Mapping

MASSIE reviews available financial documentation to understand how your organization operates.

This review typically includes:

• Financial statement workpapers
• ASC 730 workpapers
• Other relevant internal documentation

Based on this review, the MASSIE team prepares a Section 174 Matrix. This matrix summarizes Section 41 qualified research expenses, where available, and identifies potential adjustments for Section 174 eligible costs.

Classification Support and Ongoing Guidance

For client-facing Section 174 matters, MASSIE works with you to evaluate whether costs are reasonable to classify under Section 174.

We have guided many clients through this process. While some issues remain open due to limited IRS guidance, we monitor developments closely.

In parallel, MASSIE collaborates with legal professionals at firms such as Sidley Austin, Morgan Lewis, and Ivins Philips. This collaboration provides additional perspective and review as decisions are evaluated.

A Thoughtful, Repeatable Approach

At MASSIE, we take a measured and practical approach to Section 174.

We focus on helping you develop a repeatable process that is simple to execute and maintain. Over time, this approach supports consistency and reduces uncertainty.