Customer Story

Our client wanted to develop an all-in-one safety and emergency app that does all the thinking for its users – making it the simplest way to keep homes and families safe. Families could use the application to prepare for all of life’s emergencies quickly and easily. The envisioned mobile application would require development

efforts related to the software’s design, architecture, core components, user interfaces and interactions, and ongoing enhancements. Our client designed, developed, and tested a mobile application for the iOS and Android operating systems.

Challenge

• The best designs for a host of specific algorithms, data structures, etc.
• The interfaces and associated software required to enable successful integration and interoperability with an end-user’s existing operating system, device platform, etc.
• Whether an envisioned platform can be easily scaled to meet the evolving needs of its end-users.
• The best method for data reporting, communications, alerts, and other related outputs.
• The extent to which the envisioned mobile application could be developed from the existing desktop version.

How the Company met the IRS Tests

Business Components: To be considered fully successful, the following aspects of performance, quality, reliability, and new or improved functions of the business component(s) would have to be assured.

• Various new and improved functions to enhance the envisioned mobile application.
• Host user interfaces multiple mobile operating systems such as iOS, Android, etc. Establish an automated process to track user’s progress
• Comply with the constantly evolving rules and regulations surrounding disaster preparedness.

Process of Experimentation:

The company took an iterative approach to develop the envisioned software applications, modules, and processes. During the study year, the following significant experimental and/or analytical activities were carried out via Sprint Cycles:

• Conducted a thorough evaluation of the feature available on the existing desktop application in an attempt to develop specifications in which the team could utilize to improve upon, introduce, and implement within the envisioned mobile application.

Technological Uncertainties:

• The best overall application architecture to achieve a specific set of parameters.
• The best choices of languages, development environments, and other tools for use in developing a new or improved application or feature
• The best design for a host of specific algorithms and data structures underlying the functionality of an application or feature
• The extent to which various performance parameters such as speed of response and scalability can be achieved and/or enhanced

Discovering Technological Information:

The analytical and experimental research and development activities carried out are aimed at discovering new information of a technical nature; specifically, these activities rely on the principles of software engineering and computer science.

Business Success

Our client ended up receiving a $112,000 federal tax credit to use to offset the employer portion of the FICA payroll tax. The $70,000 dollars of tax paid in 2020 was offset as a credit. The unused credit was carried forward to 2021

Why The Tax Engineers

The Research and Development Tax Credit is one of the most significant and valuable federal tax incentives— potentially worth thousands or even hundreds of thousands of dollars. Our team includes engineers and financial professionals with in-depth knowledge of the credit. We provide the following:

• No Cost estimate of Federal and State Tax credit
  • Fixed Fee pricing not based on a percentage of the credit
  • Calculations of the Regular Credit and Alternative Simplified Credit Methods
  • IRS compliant supporting documentation detailing all qualified R&D Expenses and Activities
  • Federal 6765 and State forms for easy transfer for CPA filing
  • 8 Hours of Audit Support to address the Information Document Request form 4564