Federal Income Tax

Cost Segregation Services

Ryan has a proven history of success identifying and securing substantial tax savings through cost segregation studies. Ryan’s Cost Segregation specialists identify and properly classify assets such as new construction or recent acquisitions. Our results are unmatched; we are typically able to reclassify up to 40% of our clients’ assets to business personal property.

Fixed Asset and Repair Deduction Reviews

Proper management and classification of fixed assets are critical to an organization’s tax management and compliance objectives. Improper capitalization of fixed assets can have a substantial negative impact on an organization’s balance sheet, resulting in missed tax savings and added compliance risks.

Ryan’s Fixed Asset Review service provides a comprehensive analysis of fixed assets to determine current asset classifications, ascertain depreciation reported in prior tax returns, and identify potential asset reclassification to ensure every appropriate tax deduction available is claimed.

IRS Audit Support Services

Ryan understands the importance of risk mitigation in today’s tax environment and offers support for IRS audit readiness and the IRS examination process. Our IRS Audit Readiness services assess audit risks, evaluate tax positions taken on returns, identify and document Internal Revenue Code (IRC) Section 6662(e) voluntary adjustment submissions, file amended returns, and work with the IRS on developing a joint examination plan.

Our IRS Audit Support services help clients plan and manage an ongoing examination, helping clarify and resolve audit issues. We assist from the opening conference to responding and tracking Information Document Requests. We make strategic recommendations and help implement various alternative resolutions. Ryan serves as a complete client advocate all the way through to the closing examination conference. Additionally, Ryan’s Federal Income Tax practitioners have significant IRS appeals experience and assist in every phase of a tax controversy, from meeting with IRS and Treasury officials to negotiating on behalf of a client in appeals.

Meals and Entertainment Review

The 50% disallowance of the deduction for meals and entertainment (M&E) expenditures represents a significant, recurring permanent increase in taxable income. Often, companies inadvertently subject fully deductible M&E accounts to the 50% disallowance, resulting in a higher effective tax rate. Ryan’s M&E review is designed to quickly understand a company’s policies and procedures for M&E tax accounting, and to calculate and document the correct amount of non-deductible M&E in the current and prior tax periods. If the size of the data set warrants it, we utilize IRS standard statistical sampling methods to aid in determining the non-deductible M&E. The benefits achieved may include considerable refunds of prior years’ taxes and ongoing permanent tax savings, while providing improvements to our clients’ processes and procedures to appropriately segregate fully deductible expenditures from otherwise partially deductible M&E costs.

Process and Technology Services

Process and technology have become critical to a more efficient and effective corporate tax practice. Ryan professionals work with clients to transform their tax function from a mere compliance group to a strategically focused department by implementing critical processes that tap the full potential of new and existing tax technology solutions.

Ryan evaluates and analyzes existing tax compliance and reporting processes, making recommendations that enhance and streamline operations. We work in tandem with our clients to implement best practice solutions while installing the proper quality assurance controls. As a result, tax departments improve efficiency, gain greater control, substantially mitigate risk, and add tremendous strategic and financial value to their organizations.

Federal Tax Compliance Services

Tax return preparation and other compliance services are essential responsibilities in every tax department. Increased regulatory scrutiny makes it more important than ever to determine tax positions as early as possible in the reporting cycle. As a result, companies are forced to spend more time and energy on the compliance process, often at the expense of higher value initiatives.

Ryan’s Federal Income Tax Compliance solutions are tailored to fit specific client requirements, whether completing a tax form based on information provided or preparing the entire tax return from start to finish. Our consultants leverage vast expertise in tax technology and project management to provide comprehensive automation solutions and unparalleled quality assurance.

Federal Tax Accounting Methods

Federal Tax Accounting methods determine the timing of revenue, expenses, and treatment of inventory and fixed assets for tax purposes. Ryan’s federal income tax professionals conduct reviews of current methods that can aid in planning to meet a taxpayer’s needs, whether to accelerate expenses to reduce taxable income and potentially create a net operating loss (NOL) or allow deferral of expenses in some cases where a taxpayer may wish to increase taxable income for credit utilization. Our comprehensive review analyzes the facts to uncover opportunities to change methods and achieve the desired results. Currently, more than 230 methods are available for automatic changes, which can be completed until the extended due date of the year of change. Additionally, accounting methods can be applied to impact earnings and profits (E&P) of foreign subsidiaries.

 In the inventory area, Ryan’s team conducts reviews focused on using the most beneficial submethods of Uniform Capitalization (UNICAP) as well as Last In, First Out (LIFO). Additionally, the use of Lower of Cost or Market (LCM) can be assessed if it provides a benefit to a taxpayer.

Statistical Sampling

Identifying the deductibility of certain categories of expense can be overly time-consuming and tedious, generally resulting in an overstatement of taxable income. Using Internal Revenue Service (IRS)-approved statistical sampling data science, Ryan is able to bring efficiencies to the process ensuring optimal deductibility while mitigating risk. Examples of tax deductible expenses where statistical sampling can be applied include meals and entertainment, parking, research and development, lobbying, gifts and awards, fines and penalties, tangible property, and fixed assets, to name a few. Through the use of statistical sampling, companies may efficiently increase earnings per share, decrease effective tax rate, and increase cash flow by incorporating these rules into their accounting policies. Ryan’s process adheres to all IRS guidance, including two separate Revenue Procedures, resulting in mitigation of risk coupled with optimal deductibility.  

Federal Tax Planning

Chief Financial Officers expect the tax department to deliver the lowest possible tax liability allowed by law. While the utilization of tax-related transactions only increases complexity and costly risks in the tax-planning arena, Ryan’s Federal Income Tax planners pursue innovative and unique solutions.

Our global tax-planning and tax return review methodologies provide risk-free approaches for our clients. Our in-depth knowledge of tax code across all industries translates to optimal cash flow for our clients. From research and experimentation (R&E) credit studies, to Domestic Production Activities Deduction (DPAD) Internal Revenue Service (IRS) Code Section 199, to meals and entertainment studies, to accounting method reviews and/or change implementations, Ryan examines every complex opportunity to uncover often overlooked tax savings.

Research and Experimentation (R&E) Tax Credits

Taking full advantage of the R&E tax credit provides permanent cash tax savings to qualified companies. As opposed to research and development (R&D) deductions, R&E tax credits are actual dollar-for-dollar federal and state credits, available to businesses of any size involved in R&E activities. Many companies are not aware of the broad scope of activities that qualify for these credits. Evolving statutes, IRS regulations, and court cases continue to create R&E tax credit opportunities for an ever-widening range of qualified businesses.

The numbers are substantial. R&E tax credits in excess of $9 billion are claimed annually at the federal level alone. Businesses taking full advantage of these credits can recapture up to 20% of increased R&D expenditures. Often, there are additional opportunities to claim credits in years where the statute of limitations are open and obtain significant cash refunds or offset other defined withholdings. Even in circumstances where a client is generating operating losses and cannot currently take advantage of the R&E tax credit at the federal level, the state credit is often still applicable and beneficial. Some states offer refundable credits or other ways to monetize the credit (for example against payroll withholding).

Ryan helps clients navigate the complexities and mitigate the risks of the R&E tax credit, enabling businesses to remain innovative and profitable. With efficient and thorough methodologies that gather in-depth information with minimal disruption to our clients, Ryan accurately executes the three-phase credit process from start to finish at the federal and state levels. We develop and document nexus between qualified activities and costs, even where no accounting exists. We also stratify qualified research expenses (QREs) by risk, so clients can determine their individual risk tolerance.