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An AI System Built for Messy and Incomplete Data
Large language models love large bodies of text. What would take a human months can be done in an instant. Even with the messiest of data, Neo.Tax's AI System can deliver an R&D credit with better substantiation than the time-consuming process of engineer interviews, because it’s one based on contemporaneous data, which the IRS now prefers.
How to Capitalize Software Costs: ASC 350-40 Explained
ASC 350-40, like much of GAAP, is intimidatingly complicated for most founders. But Neo.Tax has created an AI-powered solution. Our platform ports directly into your payroll and project management systems and solves for ASC 350-40. With Neo.Tax, the whole process is as simple as entering the dates when you want each project to enter each stage, and our AI automatically sorts and expenses or capitalizes the R&D expenditures according to GAAP.
The Kyocera Section 41 Case Should be a Wake-Up Call
The IRS has been emphasizing the necessity of contemporaneous documentation for decades, but this recent motion for summary judgment against Kyocera could mark a potential shift towards a stricter application of their long-standing policy. The direction seems clear—reliance on after-the-fact interviews without supporting documents is increasingly untenable.
Neo.Tax Has Simplified the Multi-Year Lookback R&D Credit
Many people don’t know this, but you can claim the R&D tax credit for the current tax year plus amend returns for the previous three tax years. For example, in 2023, you could claim credits for 2023, 2022, 2021, and 2020. That retroactive tax filing could be worth hundreds of thousands of dollars (or more) for your company.
How Neo.Tax’s AI will save controllers and engineers hundreds of hours this coming tax season
One of the big challenges faced by a controller or a head of tax during tax season is creating and then interpreting an accurate snapshot of all the work completed at a company during a given year. Neo.Tax’s AI solution connects directly with a company’s existing internal task-level data sources to create an accurate, exhaustive, and audit-proof IRC Section 41 filing.
Neo.Tax’s Large-Language Model (LLM) will change the future of R&D Taxes
Every innovative enterprise company has to sort through mountains of data and conduct time-consuming interviews with engineers to file their IRC Section 41 R&D Tax Credit. At Neo.Tax, our team of machine-learning experts, AI engineers, and tax experts dove into creating an LLM specifically fluent in R&D Tax-related inputs. "People have been waiting for a breakthrough application of AI for business,” Neo.Tax co-founder and CTO Firas Abuzaid says. “This LLM use-case for the R&D credit demonstrates how powerful AI can be when thoughtfully designed to solve a rote, time-consuming, and repetitive task.”
Case Study and Free Library: How Our Design Team Solved for Tailwind-Figma Compatibility
At Neo.Tax, we take UX and graphic design seriously. And as our engineers switched to Tailwind UI, we realized we had a problem: it wasn't compatible with Figma, which we used for design. So, our design team set off to build a custom solution. Here's how they cracked the code — and here's how you can use their learnings and free library to supercharge your own designs.
The IRS’s Proposed Form 6765 Would Change How You File for an R&D Credit
Accuracy, supported by quantifiable data, will become even more essential for those filing for the R&D credit. Luckily, Neo.Tax’s automated filing LLM connects directly to your project-management and payroll & GL software to create a data-backed filing that already meets the proposed higher IRS standard. And best of all, you can be confident that your R&D credit filing is backed by contemporaneous data and audit-ready.
TEI and TR Present "Section 174: What We Know Now" Webinar
On February 21, the Tax Executives Institute and Thomson Reuters are holding a live webinar entitled “Section 174: What We Know Now.” The in-depth presentation, which starts at 2pm ET, will provide expert guidance into how best to strategize around tax treatment of R&D expenditures as they currently stand under Section 174.
The House Approves Bi-Partisan Bill to Revive R&D Tax Credit and the Child Tax Credit
The Tax Relief for American Families and Workers Act of 2024 passed in the House by a vote of 357 to 70 on Wednesday. The bill will help restore much of the Covid-Era Child Tax Credit and will rewrite part of the Trump-Era change to R&D Taxes that had made domestic R&D costs prohibitively expensive for innovative American companies. Whether the Senate approves the bill remains up in the air.
Companies Can Now Claim $500K in R&D Payroll Credits, New IRS Guidance Says
Starting with the 2023 tax year, a qualified small business may elect to claim up to $500,000 of its credit for increasing research activities as a payroll tax credit. Previously, taxpayers could only claim up to $250,000.
Neo.Tax's Tax Season 2024 Calendar
Department heads spend over 150 hours each year getting R&D taxes prepared for enterprise companies! That’s why, at Neo.Tax, we’ve built a tool to streamline the arduous R&D tax process.