Making A Move To CTI – R&D Success Story

Written by Corporate Tax Incentives. Updated Oct 24, 2018.


Client Profile:


Internet Security Software

Previous R&D Provider: 

None (completed internal)


  • No Documentation to Support R&D Tax Credit Claims. Over the years, the company used their internal finance and accounting personnel to claim federal and state R&D tax credits for the tax years 2010 – 2016 and since the company was in a tax loss with millions of dollars of net operating loss (NOL) carryforwards they did not invest a lot of time documenting their research activities and expenses but instead calculated the credits based on estimates and assumptions
  • Current IRS Audit. After many years of claiming the R&D tax credit, the IRS opened up an examination into the federal tax returns filed for tax years 2015 and 2016 with particular interest in the R&D tax credit claims.


  • The company hired CTI to manage all aspects the IRS audit and identify other credit opportunities.
  • CTI handled all IRS correspondence and prepped the company’s software engineers for interviews with the IRS agent.
  • CTI immediately performed an R&D study to fully re-calculate and document all of the company’s R&D tax credits.           
  • The IRS audit lasted about 3 months and the IRS agent opened up the examination to include all prior years in which the credits were claimed.


With CTI’s R&D services, the company was able to:

  • Successfully defend the R&D tax credits previously claimed
  • Sustained over $1 million of federal R&D tax credits
  • 92% of all federal credits sustained (with only 8% disallowance)
  • Accurate calculations and full documentation to support all State R&D tax credits in case the State taxing authorities audit the company

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Topics: R&D Tax Credit

Corporate Tax Incentives

Written by Corporate Tax Incentives

CTI is a tax incentives specialty firm that secures greater tax credits for businesses with our proven project methodology and unparalleled personalized service. For almost 20 years, our elite tax professionals have proactively engaged clients to deliver unmatched value with transparency and efficiency thorough secure in-house software, comprehensive audit-ready deliverables, and 24x7 access to real-time dashboards. We are tax consultancy experts passionate about maximizing credits and incentives for powering the success of your business.