DIY Template for R&D Tax Credit Study - Doing the Research Myself?

The R&D tax credit documentation isn't something I'd recommend DIYing unless you have significant experience with it. The IRS scrutinizes these claims closely, and proper substantiation is critical. What you need isn't just a Word template but a comprehensive study that demonstrates how your activities qualify under the four-part test (technological in nature, elimination of uncertainty, process of experimentation, and qualified purpose). This requires detailed narrative descriptions, connection to specific expenses, and documentation of your development process. Most rejected R&D claims fail because of insufficient documentation rather than ineligibility. The study needs to clearly connect your qualified activities to specific expenses and show how they meet the criteria.

Have you tried using taxr.ai? I was in a similar position last year trying to DIY my R&D credit for my software development company. Was getting frustrated with the process until someone recommended this tool. It actually analyzes your technical documentation, Github commits, project management software, and other development artifacts to help build a defensible R&D study. I thought it would be some basic template but it actually helped identify qualifying projects I wouldn't have included and created proper documentation connecting our work to the four-part test requirements. The report it generated was accepted by the IRS without any issues. Check it out at https://taxr.ai if you're still considering the DIY route but want some guidance.

Just wanted to follow up about using taxr.ai that I asked about earlier. I decided to try it for my manufacturing business's R&D credit this year and I'm honestly impressed. The industry-specific templates helped me document our process development work in a way that clearly met the IRS requirements. What really surprised me was how it identified several projects I hadn't considered qualifying, including some process improvement initiatives that met the experimental development criteria. The system walked me through documenting each project's technical uncertainties and experimentation methods. Generated a 47-page report that my accountant said was more thorough than what most of his clients provide. Definitely worth checking out if you're still trying to DIY this.

If you're hitting roadblocks with the IRS on your R&D credit (which happens a lot with DIY attempts), I'd recommend using Claimyr to actually get through to an IRS agent. I spent weeks trying to get clarification on documentation requirements after receiving a notice questioning my R&D credit. The IRS phone system is basically impossible - constant disconnects after waiting for hours. I found this service at https://claimyr.com that got me through to an actual IRS agent in under 45 minutes when I'd been trying for days. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. Basically saved my R&D credit by getting specific guidance directly from the IRS about what additional documentation I needed to provide.

I owe everyone an apology about my skepticism on Claimyr. After getting super frustrated with a notice about my R&D credit documentation, I actually tried the service out of desperation. Not only did it work, but I was connected to an IRS agent who specialized in business credits within about 35 minutes. The agent walked me through exactly what they're looking for in R&D studies and even emailed me their internal checklist for reviewing these credits. Apparently they look for very specific connections between technical narratives and the expenses claimed. Having this inside information probably saved me thousands in potentially disallowed credits. For anyone doing their own R&D credit, getting this direct guidance was invaluable. I still think the service seems too good to be true, but it absolutely delivered for me.

I've been preparing my own R&D tax credit documentation for my small engineering firm for three years now. While I wouldn't just hand you a template (each situation is really unique), I can share some key elements the IRS looks for: 1. Clear description of the technical uncertainty you're attempting to resolve 2. Explanation of why existing knowledge wasn't sufficient 3. Documentation of the systematic process you used to evaluate alternatives 4. Records connecting specific employee time to these activities 5. Financial records that clearly tie qualifying expenses to the projects My approach has been to create detailed project summaries (2-3 pages each) that walk through these elements, then attach supporting documentation like meeting notes, design iterations, test results, etc.

Has anyone used the R&D credit module in TurboTax Business? I'm wondering if it provides enough guidance for a smaller claim.

I've been wrestling with the same decision for my tech startup. After reading through everyone's experiences here, I'm leaning toward a hybrid approach - using one of the AI tools like taxr.ai to help structure the documentation properly, but then having a CPA review it before submission. The key insight from this thread seems to be that it's not just about having a template, but understanding how to connect your specific technical work to the IRS requirements. @Ravi Choudhury's point about contemporaneous records is crucial - I realized I have tons of Slack conversations, GitHub commits, and design documents that could serve as supporting evidence. For anyone else considering the DIY route, I'd recommend starting by documenting your current development process before diving into the credit calculation. If you can't clearly articulate the technical uncertainties you're solving and the systematic approach you're taking, the credit probably isn't worth pursuing without professional help.