Corporate Tax and R&D Credits Built Around the Work Your Company Is Already Doing
Tax Planning Should Start with the Accounting Records
Corporate Tax Services
Corporate tax support for research-driven companies should do more than produce a return at year end. The tax process should connect to the company’s accounting records, funding sources, ownership structure, state footprint, and long-term business plans. ADC GovCo helps companies manage corporate tax compliance and planning with the same practical, documentation-focused approach we bring to accounting and federal award support.
Corporate Tax Return Preparation
- Preparation of federal and state corporate income tax returns
- Tax return support for C corporations, S corporations, partnerships, and LLCs taxed as corporations or partnerships
- Review of book-to-tax differences, depreciation, amortization, equity activity, and other tax adjustments
- Coordination of tax return positions with the company’s accounting records and year-end close
- Preparation of supporting schedules needed for management review and filing support
Corporate Tax Planning and Advisory
- Estimated tax planning and payment support
- Planning for taxable income, losses, net operating losses, and timing differences
- Entity structure and tax classification considerations as the company grows
- Coordination with fundraising, equity compensation, ownership changes, and investor reporting needs
- Planning around research spending, federal award activity, commercialization, and future profitability
- Planning purposes for M&A considerations (both buying and selling), consolidation, or new entity expansion
Year-End Tax Readiness
- Review of accounting records before tax preparation begins
- Identification of missing documentation, unusual balances, or accounts requiring cleanup
- Coordination of payroll, contractor, fixed asset, debt, equity, and grant-related tax information
- Communication of open tax items before deadlines become urgent
- Tax close support designed to reduce surprises at filing time
R&D Credit Studies
The R&D credit can be valuable for companies developing new or improved products, processes, software, technologies, or technical capabilities. The difficulty in calculating the credit depends on both the nature of the work performed and the financial support behind the costs. ADC GovCo helps companies evaluate credit opportunities, organize qualified research expenses, and prepare support for the credit in a way that connects back to the company’s accounting records and project activity. This credit not only provides cash flow opportunities to the company, but also provides valuable insight into each research project.
R&D Credit Eligibility Assessment
- Review of research activities, development projects, technical objectives, and commercialization efforts
- Discussion of uncertainty, experimentation, design iterations, testing, prototyping, and technical problem solving
- Evaluation of whether project activity may support a federal and/or state R&D credit claim
- Identification of the business components, departments, employees, contractors, and cost categories that may require documentation
Qualified Research Expense Analysis
- Analysis of wages, supplies, and contract research costs that may qualify for the credit
- Review of payroll records, time allocations, contractor invoices, general ledger detail, and project reporting
- Coordination with grant, contract, and commercial project records to avoid unsupported or duplicated cost treatment
- Reconciliation of qualified research expense schedules to the company’s books and tax return support
Study Documentation and Tax Filing Support
- Preparation of R&D credit study documentation and supporting schedules
- Coordination with Form 6765, Credit for Increasing Research Activities
- Support for reduced credit elections, payroll tax credit considerations, and related tax return reporting where applicable
- Organization of project, employee, contractor, and cost support for management review and tax file retention
- Assistance responding to IRS or state questions related to the R&D credit claim
Our goal is not to force an R&D credit claim into the tax return at the end of the year. It is to help companies understand what may qualify, what support is needed, and how the credit fits into the broader tax, accounting, and funding picture.
Other Tax Services
As research companies grow, tax questions often expand beyond the annual return and the R&D credit. New states, new funding sources, foreign contractors, equity grants, revenue contracts, and commercialization activity can all create additional tax considerations. ADC GovCo helps identify these issues early and coordinate the right tax support before they become filing problems.
State and Local Tax Support
- State income tax filing analysis and compliance support
- Nexus review as employees, contractors, customers, and operations expand across states
- Apportionment and allocation considerations for multi-state companies
- Coordination of state R&D credits, where available
- Sales and use tax issue identification and referral coordination when specialized support is needed
Tax Notices and Audit Support
- Review and response support for federal and state tax notices
- Coordination of documentation requested by taxing authorities
- Support for R&D credit, payroll tax credit, income tax, and filing-related questions
- Assistance organizing accounting records and tax workpapers for review
- Communication with agencies, as authorized, to help resolve open items
Special Tax Projects
- Accounting method and timing issue coordination
- Fixed asset, depreciation, and capitalization review
- Section 174 research expenditure coordination with tax return preparation
- Equity, stock option, and ownership-change tax coordination with outside counsel or advisors where needed
- Tax planning support tied to fundraising, acquisition readiness, commercialization, or significant growth events
For companies managing federal awards, private capital, and commercial growth at the same time, these tax services are most effective when they are coordinated with the broader accounting and financial reporting process which allows for a proactive approach.
What Makes Working with ADC GovCo Different
Most tax providers see the company once a year, after the accounting records are closed and the facts are already set. ADC GovCo takes a different approach. Because our tax, accounting, compliance, and advisory work are connected, we help clients think about tax issues while the accounting records are being built, maintained, and used to manage the business.
We understand research companies, not just tax returns
Our clients are often balancing federal awards, commercial projects, investor expectations, research spending, payroll growth, contractors, and commercialization plans at the same time. We understand how those activities affect tax compliance, R&D credit opportunities, accounting records, and management decisions. We help our clients not only stay tax compliant but understand their tax situation in the current year and years to come. With tax legislation being an ever changing situation for R&D companies between the TJCA and OBBBA, we help research companies stay ahead, understand, and on top of the changes that have a direct impact on them.
The R&D credit work starts with the financial data
R&D credit studies are stronger when the accounting records already identify the people, projects, contractors, supplies, and costs connected to research activity. We help clients build and use financial records that make the credit analysis more efficient, more supportable, and easier to explain.
Tax planning is coordinated with accounting and compliance
For companies with SBIR, STTR, NIH, NSF, DOE, DoD, or other federal funding, tax decisions cannot be considered in isolation. Cost treatment, labor allocation, grant activity, indirect rates, state filings, Section 174 research expenditures, and R&D credit documentation all need to fit together. ADC GovCo helps connect those pieces so the company is not managing tax, accounting, and compliance in separate silos.
We focus on practical, defensible support
Our goal is not to overcomplicate the tax process or chase credits that cannot be supported. We help clients identify reasonable opportunities, organize the documentation behind them, and make sure the final tax positions are tied back to the company’s records and business activity.
One team can support the company as it grows
As a company moves from early research to Phase II funding, commercialization, fundraising, or multi-state operations, the tax questions change. Because ADC GovCo works across accounting, reporting, compliance, tax, R&D credits, and planning, clients can expand support without re-explaining the business to a new provider every year.
Frequently Asked Questions
Which companies typically qualify for the federal R&D credit?
Companies developing new or improved products, processes, software, technologies, or technical capabilities. Eligibility depends on the nature of the work performed and the financial support behind the costs, which is why we start with an eligibility assessment covering technical uncertainty, experimentation, design iterations, testing, prototyping, and technical problem solving.
What counts as a qualified research expense?
Generally wages, supplies, and contract research costs. We review payroll records, time allocations, contractor invoices, general ledger detail, and project reporting, then reconcile the qualified research expense schedules back to your books and tax return support.
What does Form 6765 support include?
Preparation of the R&D credit study documentation and supporting schedules, coordination with Form 6765 Credit for Increasing Research Activities, support for reduced credit elections and payroll tax credit considerations where applicable, and organized project, employee, contractor, and cost support for management review and tax file retention.
Does SBIR, STTR, or other federal funding change how the credit is handled?
It changes what has to be coordinated. For companies with SBIR, STTR, NIH, NSF, DOE, DoD, or other federal funding, cost treatment, labor allocation, grant activity, indirect rates, state filings, Section 174 research expenditures, and R&D credit documentation all need to fit together, and grant, contract, and commercial project records are reviewed so costs are not unsupported or duplicated.
How does Section 174 affect the corporate return?
Section 174 research expenditure treatment is coordinated directly with tax return preparation, alongside accounting method and timing issues, fixed asset, depreciation, and capitalization review. With TCJA and OBBBA changes, we help research companies stay ahead of the legislation that affects them.
When should tax planning start?
Before the records are closed. Most providers see the company once a year after the facts are set. We review accounting records before tax preparation begins, identify missing documentation and accounts needing cleanup, and communicate open tax items before deadlines become urgent.
Let's Make Tax Planning Part of the Bigger Financial Picture.
If your company is developing new technology, managing federal awards, or investing in research and growth, we can help connect the tax return, R&D credit opportunity, and accounting records behind the business. Let’s talk about what your company is doing now and what support will matter most before year end.