✏️Prompts

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.

Used by

Finance Teams