R&D Documentation & Qualification Framework

R&D tax credits represent significant value for industrial companies, but the documentation burden is where most claims fall apart under examination. The four-part test is conceptually simple — the complexity is in proving that specific activities, employees, and expenses qualify, with contemporaneous documentation that meets IRS standards. This framework is built from 89 R&D consulting engagements I led across KPMG and EY, representing over $1B in aggregate tax credit exposure, and stress-tested through 14 IRS audit defense proceedings. It covers the four-part test, business-component identification, employee time-tracking methodology, supply expense documentation, and contractor qualification analysis. The IRS risk-level rating system is calibrated to actual examination patterns — not theoretical compliance guidance, but practical documentation strategies that have survived scrutiny. Built to withstand an audit, not just to file a claim.