Compliance Review
A technical review of how the number was built, not just what the number is. Methodology errors compound quietly across years and are expensive to unwind.
What's included
- Independent recalculation with a variance analysis against your figures
- Base period and controlled group documentation
- State-by-state qualification and apportionment review
- Written technical memorandum supporting the positions taken, prepared in accordance with Treasury Circular 230 written-advice standards (§10.37)
Who this service is for
Multi-entity or multi-state groups, and anyone inheriting a claim from a prior adviser.
Discuss this service (opens in a new tab)How it works
Step 1: Re-perform the calculation
We re-perform the credit calculation independently, testing the base amount, the fixed-base percentage, gross receipts definitions, controlled group aggregation and the choice between the regular and alternative simplified methods.
Step 2: Check every state
Multi-state groups receive particular attention. State programs use their own definitions of qualified spending, their own base periods and their own apportionment rules, so a federally correct claim can still be wrong in six states at once.
Step 3: Confirm the payroll offset
Where the payroll tax offset election is in play, we confirm the qualified small business tests are met and that the election has been made correctly and on time: it must be made on an original return filed by the due date (including extensions) and cannot be made on a later amended return.
Where creditARMOR helps
The parts of the platform this service draws on.
- State checkPick the state where the research was performed, from any of the 50 states or DC. See the feature
- Regularly reviewed state rulesState program data is reviewed regularly by tax specialists and updated without waiting for a code release; always confirm current rules with the relevant revenue authority. See the feature
- Risk assessment engineFederal, state and combined audit-readiness scores from 0 to 100 (a higher score is better), each with a Low, Medium or High risk band. See the feature
- Risk report exportExport the full risk report as PDF, and each project's IDR-style response as Word, PDF or Google Docs, to share with your CFO, your CPA or your specialist. See the feature
Related services
- AI-Powered R&D Tax Credit ReviewMachine-assisted analysis of your projects, payroll and ledgers to estimate your credit and identify documentation gaps before you file.
- Audit ReadinessStress-test an existing or planned claim against the evidence standards examiners commonly apply.
- Documentation BuilderCapture engineering activity as it happens so project narratives are supported by contemporaneous records — continuously, not annually.
- Audit Defense SupportFacing an R&D tax credit examination? We help assess your claim, organize supporting evidence and prepare for the examiner's questions. If needed, Swanson Reed can assist you with representation before the IRS.
Common questions
We are pre-revenue and pay no income tax. Is the credit still useful?
Often, yes. A qualified small business (gross receipts of less than $5 million for the year and no gross receipts before the five-tax-year period ending with that year) may elect, on a timely filed original return, to apply up to $500,000 of federal credit each year against payroll taxes ($250,000 against the employer share of Social Security tax and $250,000 against the employer share of Medicare tax), for up to five tax years. Credits that are not used carry forward for up to 20 years. Several states go further and pay cash refunds, and a handful allow unused credits to be sold to other taxpayers.
How far back can we claim?
Refund claims on amended returns must generally be filed within three years from the date the original return was filed (a return filed early is treated as filed on its due date) or two years from the date the tax was paid, whichever is later. A company that has never claimed can often claim credits for several open years, but the claim must identify each business component, the research activities for each and the total qualified wage, supply and contract research expenses, with a signed declaration. The payroll tax election and the 280C(c) reduced-credit election cannot be made on an amended return, and for a company without taxable income, prior-year claims generally create carryforwards rather than cash refunds. Time limits differ by state, and some state programs require registration, pre-approval or an application, often by a fixed deadline, before a credit can be claimed or used. Check each state's page in the credit database.
How is an engagement priced?
The creditARMOR mock audit is free. Scoping is also free, and for separate Swanson Reed services pricing is agreed before work begins, based on the size and complexity of the engagement. We do not price documentation or examination support work as a percentage of an unverified estimate.
Run a free R&D tax credit mock audit.
You can also book a free thirty-minute scoping call with a specialist. Upload your files and see how your evidence would hold up to the questions an IRS examiner is likely to ask. A higher score means a more audit-ready claim.
creditARMOR is a free service. Passing this mock audit does not guarantee that your claim will pass an IRS examination. Book a call or email hello@creditarmor.ai for a login.