R&D Audit Protection
Three areas that matter if a claim comes under examination. This page explains what each is for and, just as importantly, what this site can and cannot say about them.
What audit protection means here
Most claims are never examined, but some are, and a claim that is questioned can cost time and professional fees even if it is ultimately accepted. Audit protection is the name for the options that exist around that possibility: a coverage option, access to specialists, and help for a claim already under examination. These options are offered by Swanson Reed, not by Cost Guru, and the wording on this site is deliberately limited.
What this site says, and does not say
Please ask Swanson Reed for terms before relying on any assumption about coverage.
- Cost Guru and its partners do not sell insurance through this site.
- Any coverage described by Swanson Reed is theirs to describe and provide.
- Coverage wording is used only as approved by Swanson Reed, its carrier and counsel.
- Nothing on this site states what is covered, for how much or under what conditions.
- A mock audit is not a guarantee of acceptance and does not predict examination.
The three areas
Details are confirmed by Swanson Reed.
| Area | What it is | Where to read more |
|---|---|---|
| Audit defense coverage | An option offered by Swanson Reed. Its terms are theirs to provide and are not stated on this site | Audit defense coverage page |
| Expert network | Access to Swanson Reed's R&D defense specialists | Expert network page |
| Already under audit | Help for a claim that is already being examined | Already under an R&D audit page |
What to do if a claim is questioned
- 1
Do not ignore it
Examination notices have deadlines. Tell your CPA, enrolled agent or attorney straight away.
- 2
Gather the records
The binder or evidence file is the starting point. Organize what you have.
- 3
Get professional help
A professional with R&D examination experience can advise on how to respond.
- 4
Ask about your options
If you used a product that includes protection, ask the provider what it covers and how to use it.
Preparing before anything happens
The best protection is a claim that is well supported from the start. Records made at the time, clear project descriptions, reasoned time allocations and costs traceable to the books all make a response easier. The R&D agent builds these as it goes, and creditARMOR tests a claim before filing so weak points can be fixed. Neither replaces professional advice, and neither guarantees an outcome.
A worked example (illustrative)
This scenario is invented. A business receives a letter asking about the time and wages claimed for one project. The finance lead tells the company's CPA at once. They open the project's binder, which links each figure to its source, and the CPA prepares a response. Because the business also used a service that includes access to specialists, the CPA asks whether to involve them. The business asks the provider for the terms, reads them and decides. The example shows the order of steps, not what any service covers, which only the provider can say.
Cost Guru and its partners do not sell insurance through this site. Any coverage described by Swanson Reed is theirs to describe and provide.
Questions to ask a provider about protection
These questions are for Swanson Reed. This site does not state the answers.
- What exactly is covered, and what is excluded?
- Who is the provider, and who is the carrier, if any?
- What conditions must be met to use it?
- Is there a waiting period, a limit or a deductible?
- How do I make a claim or ask for help, and who do I contact?
- Does it apply to claims prepared outside the provider's products?
Common misunderstandings
People often assume that any protection means a claim will not be questioned, or that it will not be lost. Neither follows. Protection, whatever its form, is about what happens if a claim is examined, not about whether it is. People also assume that a mock audit counts as protection. It is a preparation tool and a separate thing. And people sometimes assume that a partner who offers the product is also the provider of any coverage. Partners should be clear with clients about who is who, and should not present themselves as selling insurance.
Explaining this to clients
If you are a partner, a short, honest explanation is best. Tell clients that claims are tested before filing, that a professional reviews them and that the product provider has options if a claim is questioned. Point them to the provider for terms. Avoid describing what is covered unless the provider has approved the wording, and avoid anything that sounds like a promise. A client who understands the limits is better placed to decide than one who has been told too much.
Keeping records ready
Whatever protection exists, the first thing anyone will ask for is the records. Keep the claim, its workings, the evidence and the review notes together, and make sure more than one person knows where they are. If a notice arrives, you will have limited time. Having the records organized, and a clear owner for the response, is worth more than any later effort. It is also the one part of protection that is entirely in your own hands.
A short readiness checklist
- The claim and its workings are saved in one place.
- Evidence is dated and linked to projects.
- The reviewer's notes and decisions are recorded.
- Someone is named as responsible for responding to a notice.
- Your adviser's contact details are to hand.
Protection questions
Does Cost Guru sell insurance?
No. Cost Guru and its partners do not sell insurance through this site.
What does the coverage include?
This site does not say. Ask Swanson Reed for terms.
Can I use these options if my claim was prepared elsewhere?
That is a question for Swanson Reed. Terms are confirmed with them.
Should I contact a professional first?
Yes. If a claim is questioned, speak to your CPA, enrolled agent or attorney straight away.
Keep exploring
How creditARMOR Audit Readiness Works
From a loaded claim to a mock audit, a fix list and protection options.
Learn morecreditARMOR Features
The seven tools inside creditARMOR, a Swanson Reed audit-readiness product, and how they fit together.
Learn moreTaxTrex + creditARMOR Bundle
Use TaxTrex to prepare and document the R&D claim, then creditARMOR to test it, under your brand.
Learn moreWhat a Mock Audit Can and Can't Tell You
A mock audit helps you prepare. It does not predict outcomes. Please read this before relying on a result.
Learn morePlease note: Estimates and drafts are prepared by software for review by a licensed CPA or enrolled agent. This is not tax advice.
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