McGuire Sponsel Blog

tcc-logo_2016_grey_smallMcGuire Sponsel would like to feature The Consultants Consortium, Inc. (TCC), a client that engaged us to conduct Research and Development (R&D) Tax Credit Studies.  TCC is a software development and implementation company that specializes in consulting services and IT solutions. The company focuses on software design, software architecture, and the integration of new system solutions and products.

McGuire Sponsel conducted on-site fieldwork, which consisted of interviews and reviewing contemporaneous documentation, to determine which activities, projects, and employees were eligible as qualified research. Time-tracking data was used to extract qualified percentages and thereby create a strong case in terms of substantiation. In seeking qualified R&D Tax Credits, McGuire Sponsel was able to include the wages of employees who participated in either software development or solution testing directly or in a supervisory or support role.

“We have had the pleasure to work with McGuire Sponsel, which has assisted us in obtaining R&D Credits along with Economic Incentives,” states Alison Maloof, CFO of TCC Software Solutions. “TCC is thrilled to work with McGuire Sponsel and their team of experts. I strongly recommend McGuire Sponsel to any company looking to obtain R&D Tax Credits, Economic Incentives or Cost Segregation Studies.”

Software companies typically engage in qualified research when developing functional software applications, enhancements, and solutions customized to each customer’s specifications for fixed-fee projects. Each project possesses different sets of technical uncertainties and risks. Examples include the recurring uncertainty of which variables will be present in the developed tools and applications, and whether creating a functional program or feature is even feasible. Generally, the largest includable expense for software companies’ R&D Tax Credits are the wages of internal employees such as software architects, systems engineers, Chief Information Officers and business systems analysts. There are also significant qualifying expenses found in contract software developers.

Many eligible software companies can take advantage of this opportunity.  Don’t hesitate to contact McGuire Sponsel if you have any questions related to the R&D Tax Credit.

TJ Sponsel

TJ Sponsel

As the Managing Director of McGuire Sponsel, TJ Sponsel has diversified the firm’s practice lines and thereby increased the potential opportunities for CPA firms and their clients. His approach to client service includes partnering with clients to produce consistent results so that firms can confidently integrate McGuire Sponsel into their strategic tax planning. View TJ's bio.

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