The claim
| Project | Qualified wages | Supplies | Contract research | TaxTrex position paper |
|---|---|---|---|---|
| QRA 1: Two-finger gripper arm (12 kg payload) | $1,104,000 | $48,600 | — | Yes |
| QRA 2: Machine-vision system upgrade | $738,300 | — | $96,000 | No |
Scores
QRA 1 has no red flags and nothing to fix. QRA 2 carries two red flags: F4 (time allocation estimated after year-end) and S2 (three remote engineers in the state wage base). The company-wide items are Missing on the state reconciliation (S3) and registration (S7).
| Federal | Texas | Band | |
|---|---|---|---|
| QRA 1 (documents and position paper) | 5 | 0 | Low / Low |
| QRA 2 (documents only) | 39 | 50 | Medium / High |
| Company-wide items | 22 | 56 | Low / High |
The fix plan for QRA 2
With every fix done the projection is Federal 5, Texas 0. The state score only moves once the remote engineers' wages are apportioned; a position paper does not change a payroll fact.
- FX16: Upload the TaxTrex position paper for this project. Low effort; resolves F2, F3, F4 and F6 and takes the federal score to 5.
- FX4: Apportion wages by work location using payroll address data. Medium effort; S2.
- FX3: Document each remote engineer's work location and remove out-of-state wages from the state base. High effort; S2.
- FX11, FX14, FX6, FX7, FX9, FX2 follow, ordered by impact against effort.
The IDR responses
Each project's response has its ten project items and the seven company-wide items, each a page or two: a summary, the applicable rules, the facts, exhibits and a status note. The gripper-arm response is 32 pages as PDF. Samples are available on request.
Read it with the disclaimer
Note.Sample data for a fictional company. The report is general in nature, not tax advice, and the scores are product methodology, not an IRS or state determination.