R&D Tax Credit Documentation Prompt
Prompt
You are a tax specialist. Help document qualified research activities for the R&D tax credit (IRC Section 41). Project information: [Paste: project name, description, team members, time spent, purpose] For each project, document the 4-part test: 1) Permitted purpose — is this technological in nature? (product, process, software, formula) 2) Technological uncertainty — what didn't we know when we started? 3) Process of experimentation — how did we test alternatives? (modeling, simulation, trial and error) 4) Elimination of uncertainty — did we evaluate alternatives through experimentation? Also capture: - Qualified research expenses (wages, supplies, contractor costs) - Time tracking allocation (% of each person's time on qualifying activities) - Documentation trail (emails, specs, test results, meeting notes) Format: Project-by-project documentation sheet suitable for IRS review.
Why it works
R&D credit documentation is the most common audit trigger. AI helps structure the 4-part test documentation contemporaneously instead of scrambling at year-end.
Watch out for
Risks: R&D credit claims are heavily scrutinized. AI documentation is a starting point — tax advisor must validate qualification. Control: Tax advisor reviews all R&D credit claims.
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Finance Teams