McGuire Sponsel, Ernst & Morris announce strategic merger

Meet our R&D Senior Tax Consultant Jamie!

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 was engaged by a software developer with an annual revenue of $24 million after the IRS audited a tax study performed by another service provider seeking tax credits for 2004 through 2006.

McGuire Sponsel was engaged by a company that designs and manufactures printed circuit boards and has annual revenue of $30 million

McGuire Sponsel was engaged by a heavy-duty equipment manufacturer with annual revenue of $35 million

On Oct. 4, 2016, the IRS published T.D. 9786, final regulations that improve opportunities for businesses that engage in internal use software development to claim the R&D Tax Credit.

McGuire Sponsel identified a software company in Pittsburgh, Pa., focused on building autonomous cybersecurity software. The company’s clientele include developers, enterprise IT and end users. The company’s staff of software engineers create tools to find and solve vulnerabilities in their software platforms.

On January 17, 2019, a district court ruled that a taxpayer was not entitled to the R&D Credits claimed in tax years 2009 and 2010 because it did not properly establish when qualified research began when calculating the base period for the Start-Up method. Dennis and Linda Quebe owned Quebe Holdings, Inc. (QHI), which operated three separate electrical contracting companies: Chapel Electric, Romanoff Electric, and CRT Technologies. The three companies designed and developed electrical systems for large commercial complexes.

On December 15, 2018, the Pennsylvania Department of Revenue issued letters to the taxpayers that applied for the tax year 2017 Pennsylvania research and development (R&D) credit informing them of the credit amounts they were awarded.

Press Release

FOR IMMEDIATE RELEASE                                                                                       

May 1, 2019

McGuire Sponsel, Ernst & Morris announce strategic merger

Partnership combines technical expertise, commitment to meaningful client collaboration

INDIANAPOLIS McGuire Sponsel, a specialty tax and consulting firm with clients throughout the United States, announced today a strategic merger with Ernst & Morris, an industry leader known for its significant cost segregation expertise. Cost segregation is the process of identifying property assets in order to optimize depreciation deductions for federal tax purposes.

Firm leaders say the merged entity – which will move forward as McGuire Sponsel – was piloted by choice and a mutual opportunity to offer additional benefits to clients.

“Ernst & Morris is an ideal partner who will bring incredible value to our clients,” said TJ Sponsel, co-founder and managing shareholder of Indianapolis-based McGuire Sponsel. “Beyond the combination of significant cost segregation expertise, we share important core values and the foundational belief that successful relationships are built on trust and integrity. We also share a commitment to serving clients with an unmatched passion for this business, focused on clients and meaningful collaboration.”

Working as an extension of clients, primarily CPA firms, McGuire Sponsel offers practices that fall outside traditional CPA firm services. In addition to cost segregation, the firm provides derivatives and debt advisory, IC-DISC, research and development tax credit studies, nonprofit advisory services and advisory on economic incentives.

Located in Marietta, Ga., just outside of Atlanta, Ernst & Morris is one of the nation’s oldest and largest firms dedicated to cost segregation studies. The firm, founded in 1993, operates in all 50 states – for both CPA firms and property owners.

“Merging with McGuire Sponsel provides tremendous opportunity for our clients, beginning with access to additional practices and a seasoned research and development practice to complement our work in cost segregation,” said Alan Smith, managing director at Ernst & Morris. “With enhanced solutions our firm is better positioned to help clients and partner CPA firms maximize savings.”

Industry veterans and CPA firms around the country are sure to take notice. Gary Shamis, founder and managing partner of SS&G where Gary grew a start up to 37th largest firm in US before combining with BDO, says the news represents an opportunity for both firms and the clients they serve. “This is a substantial combination of industry forces,” said Shamis, who is now CEO of Cleveland-based Winding River Consulting. “McGuire Sponsel has quickly developed a national reputation for high-level advisory work, and Dave McGuire is a leading industry expert. Ernst & Morris is an industry pioneer and considered to be one of the top cost segregation boutique firms in the country. It’s a sizeable concentration of technical expertise, proven track records and client-focused service.”

Terms of the private deal were not disclosed.

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About McGuire Sponsel

Partnering with local and regional CPA firms, McGuire Sponsel offers cost segregation, R&D tax credits, cost segregation, IC-DISC, and Credits & Incentives. . McGuire Sponsel strengthens client relationships by offering a conservative, methodical approach to delivering tax practices that fall outside the traditional practices of local and regional CPA firms. Our approach has allowed us to become a trusted resource to CPAs across the country, with a strong track record with the IRS.