In a joint effort to help more companies increase their after-tax return on their R&D investment and to provide enhanced R&D tax services to companies, RSM McGladrey, Inc., and Axiom Solutions, LLLP, two of the nation's leading business service providers for middle market companies, have announced an agreement to work together to provide Research & Development Tax Credit services to companies in the upper end of the middle market.
The R&D Tax Credit program, an economic investment incentive, has been in place since 1981 and recognizes investment that leads to the development of new, more efficient products and technological services. The R&D credit has become increasingly attractive to a broad range of businesses, primarily in the manufacturing, technology, and engineering industries. The credit applies not only to product development efforts, but also to manufacturing process improvements and certain types of software development.
In 2007, in an effort to close the tax gap, the IRS increased the scrutiny of Large and Medium Sized Businesses (LMSB) R&D Tax claims, declaring the claims as a Tier 1 Issue. As a result, RSM McGladrey and Axiom Solutions have each strengthened their offerings to an even higher level of precision and focus in documenting and substantiating the IRS areas of interest.
"This is a very attractive strategic alliance for RSM McGladrey. Working together with Axiom, will create additional critical mass and synergy from two forward-thinking R&D practices. Together we can offer high quality R&D Tax Credit services to a broader base of clients," said Tom Windram, national R&D tax practice leader for RSM McGladrey. "We are proud to work with Axiom, which has developed an excellent R&D Tax Credit practice very similar in philosophy to our own."
The RSM McGladrey R&D team is composed of more than 60 R&D professional specialists, including accountants, tax attorneys, consultants, and former IRS specialists with significant experience preparing R&D claims and supporting documentation. Axiom's R&D business is comprised of more than 45 accountants, engineers and tax attorneys from a variety of industries.
"This is a major step for the two companies" said Larry Nealy, Partner with Axiom Solutions. "Axiom has spent years developing one of the most advanced process methods in the market leveraging focused engineering and tax based study teams with proprietary software technologies. RSM McGladrey has an excellent R&D team as well. Combined, we have an R&D practice that is bigger and deeper than any other firm focused on serving middle market companies."
This cooperative agreement allows RSM McGladrey and Axiom to work together on targeted marketing efforts and perform joint consulting engagements under primary/subcontractor arrangements.
About RSM McGladrey
RSM McGladrey is a leading professional services firm providing accounting, tax, and business consulting. RSM McGladrey operates in an alternative practice structure with McGladrey & Pullen LLP, a partner-owned CPA firm that delivers audit and attest services. Through separate and independent legal entities, they work together to serve clients' business needs. Together, the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 professionals and associates in nearly 100 offices. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms. RSM McGladrey is the official accounting, tax and business consulting firm of The PGA of America.
About Axiom Solutions
Axiom Solutions is one of the nation's leading professional services firms specializing in R&D Tax Credits for medium-sized companies. Headquartered in Denver, CO, and with offices in 12 other cities nationwide, Axiom provides its R&D Tax Credit expertise to CPA firms and their clients as a value-added service. To date, Axiom has completed hundreds of engagements in more than 50 industry sectors.