Driving faster, more accurate and more beneficial tax decisions
– Qualifying for a subsidy for increasing research activities in the form of US federal income tax credits isn’t easy task but receiving those credits can be a huge benefit for any business
– Businesses who are unable to handle this extra work stand to miss out on increased financial benefits
– KPMG has built the first AI-powered platform with Watson to specifically help clients secure the R&D Credits they deserve.
Qualifying for a subsidy for increasing research activities in the form of US federal income tax credits (also known as a research & development “R&D Credit”) is no easy task but receiving those credits can be a huge benefit for any business looking forward to future growth. At KPMG, one of the oldest and most reputable firms providing audit, tax and advisory services, we have embedded many innovative artificial intelligence (AI) solutions into the services provided to our clients. One such solution was developed specifically to assist companies who wish to qualify for an R&D Credit. The process of substantiating R&D Credit eligibility is typically costly and challenging for any organization, often requiring a considerable amount of time and labor to capture multiple documents, organize them, and analyze the data to see if the company’s expenditures qualify for a tax credit under IRS guidelines. Businesses who are unable to handle this extra work stand to miss out on increased financial benefits.
KPMG has built the first AI-powered platform with Watson to specifically help clients secure the R&D Credits they deserve. To do this, we put our tax team to work alongside a powerful Watson-AI solution that helps businesses increase the speed and success of capturing R&D Credits. The AI-solution can upload thousands of documents and analyze both structured and unstructured data at rapid speeds to help identify projects that are eligible for R&D Credits, using natural language processing to understand context.
With Watson, KPMG tax professionals have access to a powerful solution that frees them to focus on the qualitative documentation which defines a project, helping to transform and enhance the accuracy, speed and ROI in generating qualified tax credits for their clients. Multiple documents are reviewed and analyzed, compared against tax rules, and a resulting confidence score is determined by Watson, which is then validated by KPMGs R&D Credit professionals.
Watson ingests and analyzes enormous amounts of data to form hypotheses, make considered arguments, and prioritize recommendations. By identifying the pertinent findings, which qualify projects eligible for R&D credits, and presenting the findings in a prioritized view, evidence supporting R&D Credit eligibility will support clients when they are examined by the IRS, thereby helping maximize their retained R&D Credit and positively affecting cash flow and reducing tax liability. Additionally, professionals can focus their time on research activities minimizing time spent on the credit claim process for an IRS audit.
The effort is essential – the total “cost” of R&D tax credits for fiscal years 2018 – 2027 is estimated to be $163 billion, $148 billion of which is attributable to corporations*. This great work is yet another example of the innovative ways KPMG continues to put AI to work for their employees and clients. Having AI tailored to your industry is becoming increasingly critical to success.
Learn about the service that enabled KPMG to achieve success.