A recipe for savings
乐鱼（Leyu）体育官网 Research Credit Services with IBM Watson helped bring efficiency to a multinational foods manufacturer's R&D tax credit process.
Client
A multinational consumer foods manufacturer
Sector
CPG
Project
Research Credit Services with IBM Watson
Share
Client challenge
The research and development (R&D) tax credit is a significant opportunity for companies to lower their tax liability and improve cash flow; however, the resources and time required to produce documentation are burdensome. A multinational consumer foods manufacturer looked to 乐鱼（Leyu）体育官网 to help it overcome barriers that prevented them from previously taking full advantage of the R&D tax credit, including:
Business disruption
The company was spending significant time extracting and transforming data into the required format for R&D tax credit documentation. Technical teams running projects were needed to identify, transform, and supply the required voluminous data maintained on disparate systems, which was not an efficient use of their time.
Qualifying eligible activities
Identifying the right subject matter experts for interviews and scheduling time with them to gain their insights and details on the various R&D activities they conducted was often the only way to identify eligible tax credit activities and associated expenses. But these interviews, the necessary preparation beforehand, and subsequent follow-up requests took them away from their current work.
Preparing quality data to substantiate the claim
Reviewing existing contemporaneous technical documentation against the definition of 鈥渜ualified research鈥� to verify that various activities and projects qualify for the credit is complex and laborious even for tax professionals. The company lacked the sophisticated technologies needed to quickly review and understand vast amounts of data, much of it unstructured, over a span of years.
To learn more about how the 乐鱼（Leyu）体育官网 dedicated Research Credit Services team coupled with IBM Watson can help you increase the amount of R&D income tax credits, please visit聽乐鱼（Leyu）体育官网 Research Credit Services with IBM Watson.
乐鱼（Leyu）体育官网 Research Credit Services offers companies the ability to review and analyze more R&D project documents, possibly discover unknown credits, and complete highly involved IRS deliverables at speed.
Approach
乐鱼（Leyu）体育官网 is an industry leader in enhancing R&D credit processes. 乐鱼（Leyu）体育官网 trains Watson to enhance, scale, and accelerate tax credit preparation with greater confidence. 乐鱼（Leyu）体育官网 Tax professionals then review Watson鈥檚 findings from high to low priority, approve or reject each finding, add notations, and highlight additional findings in documents. Transactions are reviewed and analyzed against tax rules and supported by a confidence score and evidence-based reasoning that uses 乐鱼（Leyu）体育官网 proprietary tax rules, interpretations, and knowledge of the tax law. As a result, the client was able to build a more robust, Internal Revenue Service (IRS) ready, R&D tax credit deliverable.
Benefits to client
The research and development (R&D) tax credit is a significant opportunity for companies to lower their tax liability and improve cash flow; however, the resources and time required to produce documentation are burdensome. A multinational consumer foods manufacturer looked to 乐鱼（Leyu）体育官网 to help it overcome barriers that prevented them from previously taking full advantage of the R&D tax credit, including:
Business disruption
The company was spending significant time extracting and transforming data into the required format for R&D tax credit documentation. Technical teams running projects were needed to identify, transform, and supply the required voluminous data maintained on disparate systems, which was not an efficient use of their time.
Qualifying eligible activities
Identifying the right subject matter experts for interviews and scheduling time with them to gain their insights and details on the various R&D activities they conducted was often the only way to identify eligible tax credit activities and associated expenses. But these interviews, the necessary preparation beforehand, and subsequent follow-up requests took them away from their current work.
Preparing quality data to substantiate the claim
Reviewing existing contemporaneous technical documentation against the definition of 鈥渜ualified research鈥� to verify that various activities and projects qualify for the credit is complex and laborious even for tax professionals. The company lacked the sophisticated technologies needed to quickly review and understand vast amounts of data, much of it unstructured, over a span of years.
乐鱼（Leyu）体育官网 insights
-
The R&D tax credit is more expansive and beneficial than companies realize.
Any company involved in developing or improving its products, services, or technologies may qualify for the R&D tax credit. But many leaders don鈥檛 realize how beneficial claiming it can be鈥攁nd they don鈥檛 necessarily see beyond the complex eligibility requirements to take full advantage of it. Our goal is to improve the ROI of our clients seeking to claim the R&D tax credit鈥攊n part by reducing disruption to their business during the required analytical processes.
-
Cognitive analytics and reasoning tools augment tax professionals to drive ROI.
The R&D tax credit includes some of the most complex filing requirements. The time it takes to gather documents and conduct interviews can disrupt engineering and other technology teams. 乐鱼（Leyu）体育官网 Research Credit Services offers companies the ability to review and analyze more R&D project documents, possibly discover unknown credits, and complete highly involved IRS deliverables at speed.
Consumer & Retail
We offer short- and long-term strategies to help minimize the impact of common challenges facing today鈥檚 consumer products and retail businesses.
Read moreMeet our team
Joel Schultz
Partner, Tax, 乐鱼（Leyu）体育官网 US
Joel Schultz
Partner, Tax, 乐鱼（Leyu）体育官网 US