Analysis and improvement (R&D) credit score reporting has developed from a routine activity right into a strategic precedence for companies. With laws just like the One Massive Stunning Invoice Act (OBBBA) and the brand new Kind 6765 Schedule G elevating the compliance burden, counting on guide processes or costly consultants is not sustainable. Groups require quicker, extra dependable methods to handle R&D credit score claims with confidence.

To satisfy this want, Thomson Reuters and Neo.Tax have partnered to ship a man-made intelligence (AI)-powered answer that simplifies the R&D credit score course of. This integration strengthens audit readiness and matches naturally into present ONESOURCE workflows, serving to groups work smarter and extra effectively.

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The triple burden: time, threat, and value

For a lot of company tax departments, the R&D credit score course of is outlined by three persistent ache factors:

1. The time drain: Tax and R&D groups usually spend over 200 hours yearly coordinating interviews, gathering documentation, and validating estimates. This guide effort not solely strains sources but in addition delays submitting and will increase the chance of errors.
2. The audit threat: Interview-based estimates and after-the-fact documentation fall wanting Inner Income Service (IRS) requirements. This may result in audit changes that scale back credit score claims by 10% or extra, placing corporations at monetary and reputational threat.
3. The fee entice: Conventional accounting companies cost exorbitant charges, starting from $100k to $500k. These charges scale back the worth for corporations the place each greenback counts in the direction of innovation and development.

ONESOURCE + Neo.Tax: A seamless, AI-powered answer for R&D compliance

Neo.Tax was constructed by a Stanford PhD in machine studying and a former IRS agent, with the aim of simplifying R&D credit score compliance by automation and synthetic intelligence. When built-in with ONESOURCE Revenue Tax, it affords a unified workflow that eliminates the triple burden and helps measurable enhancements.

Right here’s the way it works:

• AI-powered evaluation: Neo.Tax connects payroll, challenge administration, and accounting techniques by way of API to determine and calculate certified R&D bills. These integrations can remove the necessity for time surveys and technical interviews.
• Easy Kind 6765 submitting: The platform straight populates Kind 6765 inside ONESOURCE, eliminating guide knowledge entry and decreasing submitting time from weeks to days.
• Audit-ready documentation: Ticket-level knowledge and modern calculations meet IRS requirements, offering sturdy protection in case of audit.
• Enterprise-grade safety: Service Group Management (SOC) 2 Kind 2 and IS027001 compliance and personal cloud deployment choices guarantee knowledge integrity and confidentiality.

Benefits of a contemporary R&D tax credit score course of

Whether or not you’re a mid-sized enterprise or a world enterprise, the ONESOURCE and Neo.Tax integration delivers tangible worth:

• Time effectivity: As much as 150 hours + saved yearly by automation and streamlined workflows.
• Correct provision: AI-driven calculations based mostly on real-time knowledge allow an on-time, correct provision as a substitute of tough estimates.
• Scalability: Simply handle R&D tax credit score processes throughout a number of entities and jurisdictions.
• Price financial savings + decrease Fin 48: Firms report 50–75% financial savings in comparison with accounting agency charges and 20-30% decrease Fin 48 reserves in comparison with interview-driven research.

Why this issues now: The October fifteenth deadline

With the October 15, 2025, R&D tax credit score submitting deadline quick approaching, tax groups are below stress to enhance effectivity, accuracy, and compliance. ONESOURCE and Neo.Tax not solely meet IRS necessities, however in addition they assist companies keep away from last-minute scrambles and expensive delays.

This urgency is amplified by current legislative modifications which have reshaped how R&D credit are calculated and documented. Automation and audit-ready processes are not elective. They’re important.

Key legislative modifications driving urgency

• Part 174 reform below the OBBBA
  The One Massive Stunning Invoice Act (OBBBA) reinstates rapid expensing of home R&D prices beginning in 2025. Some companies can now amend prior returns or take catch-up deductions, which makes correct documentation and automation extra crucial than ever.
• The compliance burden of Kind 6765 – Schedule G
  The IRS has elevated the compliance burden for Kind 6765, requiring certified bills to be tracked on the enterprise element stage beginning in 2025. Neo.Tax’s ticket-level monitoring and AI-powered calculations straight deal with these compliance challenges.

What’s new in 2025

• Quick expensing of home R&D below Part 174 (OBBBA)
• Improve compliance burden with new Kind 6765, Schedule G
• Amended return choices for small-medium companies (SMBs) (≤ $31M receipts)
• Catch-up deductions for bigger companies
• Enhanced IRS evaluate of Kind 6765
• Elevated demand for automation and audit-ready processes

Tailor-made R&D tax credit score automation for each enterprise

Whether or not you’re an SMB, an enterprise, or an present ONESOURCE person, Neo.Tax delivers scalable, compliant options that suit your workflow:

For SMBs (< $500M income):
Neo.Tax affords a flat annual charge that eliminates unpredictable billable hours. With ONESOURCE already in place, SMBs can unlock the total worth of their tax know-how funding by automating R&D credit score compliance.

For Enterprises (> $500M income):
Scale your R&D credit score course of throughout entities with enterprise-grade AI and seamless integration into your present ONESOURCE infrastructure. No new techniques, no workflow disruption—simply streamlined compliance aligned with IRS requirements.

For Current ONESOURCE prospects:
In case you’re already utilizing ONESOURCE Revenue Tax, you’re midway there. Neo.Tax completes the answer by automating R&D credit score calculations and submitting straight inside your present workflow.

Constructed for the way forward for tax compliance

Neo.Tax isn’t only a software, it’s a strategic enabler. As current laws comparable to OBBBA continues to affect tax reporting requirements and R&D credit score eligibility, AI-powered automation helps tax groups keep proactive, correct, and aligned with evolving necessities.

Key options embrace:

• Part 174 help and amortization instruments
• State-level QRE monitoring
• Human-reviewed claims for high quality assurance
• Collaborative workspace for tax, R&D, and advisory groups

That is the sort of future-ready compliance that tax leaders have been asking for, and now it’s obtainable by a trusted partnership between Thomson Reuters and Neo.Tax.

Take the subsequent step with ONESOURCE and Neo.Tax

Think about how fashionable approaches can enhance your present processes. With ONESOURCE and Neo.Tax, you may assist mitigate the triple burden of value, time, and threat—whereas supporting higher effectivity and strategic alignment.

With the October fifteenth deadline approaching, now’s the time to modernize your R&D credit score technique. Whether or not you’re submitting amended returns or getting ready for catch-up deductions, ONESOURCE and Neo.Tax supply the automation and compliance instruments you want to keep forward.

Discover the ONESOURCE and Neo.Tax R&D tax credit score course of to see how this integration can rework your R&D credit score technique earlier than the October fifteenth deadline.

Neo.Tax R&D Credit score Supervisor

ONESOURCE and Neo.Tax modernize the R&D tax credit score course of

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