Risk Assessment
Research credits sit on the balance sheet as a benefit and in diligence as a liability. A risk assessment tells you which one you are carrying.
What's included
- Exposure quantification by year, entity and jurisdiction
- Scored risk register with drivers and mitigations
- Summary formatted for use in financing or transaction diligence (prepared for the company; third parties may not rely on it without a separate written agreement)
- Remediation roadmap with cost and benefit estimates
Who this service is for
Boards, CFOs and companies preparing for financing, sale or audit.
Discuss this service (opens in a new tab)How it works
Step 1: Score every open year
We review every open year, scoring each claim on documentation quality, methodology soundness and aggressiveness of position, then quantify the credit at risk together with potential interest (IRC 6601) and penalty exposure, including the 20% accuracy-related penalty under IRC 6662 and the 20% penalty for excessive refund claims under IRC 6676.
Step 2: Check the triggers
The assessment considers the specific triggers that draw attention: sharp year-on-year swings, high contractor ratios, claims that consume an implausible share of payroll, and inconsistencies between the tax file and public statements about the business.
Step 3: Report and remediate
Findings are delivered in a form that works for a board paper or a data room, with a clear remediation path and an estimate of what each fix is worth.
Where creditARMOR helps
The parts of the platform this service draws on.
- 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
- Fix libraryEach gap comes with a specific fix, prioritised by impact and the effort it takes. See the feature
- State checkPick the state where the research was performed, from any of the 50 states or DC. 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.
- Compliance ReviewAn independent second opinion on methodology, base period calculations and multi-state apportionment.
- Documentation BuilderCapture engineering activity as it happens so project narratives are supported by contemporaneous records — continuously, not annually.
Common questions
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.
What is the relationship between creditARMOR and Swanson Reed?
creditARMOR and TaxTrex are products of Swanson Reed, a specialist R&D tax advisory practice. creditarmor.ai is operated by RandD Tax Credit Solutions LLC. Swanson Reed's specialists provide technical review and multi-jurisdiction experience under separate engagements. If requested, a person at Swanson Reed can review your mock audit results and re-perform the mock audit for assurance. If needed, Swanson Reed can assist you with representation before the IRS.
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.