by Kyle RiddleApril 24, 2019

Client Profile
McGuire Sponsel was engaged by a company that designs and manufactures turnkey automation systems for major automotive manufacturers including Toyota, Nissan and Honda. McGuire Sponsel worked closely with the company’s two owners, who were also lead engineers on all projects, and two soft ware designers.

The Challenge
Due to what the company designs and manufactures and the engineering activities involved, McGuire Sponsel had to perform extensive analysis to determine what types of engineering services were being offered to the company’s clients and by whom, since the company used a host of third-party engineers to complete client work. McGuire Sponsel interviewed all third-party consultants to determine their amount of involvement prior to submitting an IRS tax claim.

Study Results
Over a four-year time period, McGuire Sponsel identified $4.1 million in Qualified Research Expenses (QREs), resulting in $260,000 in tax credits.