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Fintech company Mercury has grown at lightning speed by prioritizing technological innovation. But this rapid growth created a complex challenge for controller Christine Andrews. Learn how Neo.Tax's AI solution simplified the process, created a more accurate filing, and saved her and Mercury's team of engineers weeks of valuable time.

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.

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.

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. 

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.”