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SPRX Review: The AI-Powered R&D Tax Credit Software

Filing for an R&D tax incentive is considered one of the most complicated and labor-intensive processes. Eliminate exhaustive documentation and analysis with SPRX, an AI-powered R&D tax credit software. Let’s take a look at what it brings to the table in this article:
Updated October 10, 2023

Innovation has always been the cornerstone of progress. It’s what propels the world forward. It’s how we reached the moon and how we’ll reach the stars. The bold and the creative shape the world — and they need ample help to execute ideas never before seen.

One such assistance is the R&D tax credit, a government incentive filed on Tax Form 6765 that rewards companies for investing in research and development. It’s dollar-for-dollar, meaning every dollar saved on payroll taxes is a dollar earned. It’s a way to lend a hand by giving businesses more cash to use right away, which you can use to push the envelope further in R&D.

The less time spent pencil-pushing, the more time innovating. Automate your analysis with SPRX: an AI-powered R&D tax credit software for more accessible and efficient auditing.

SPRX Landing Page

But, what is it exactly and how can it help you? More on that in this article.

What is SPRX?

SPRX is a relatively new company founded by Mark Andrus and Dominic Vitucci in 2020. It’s an AI-powered solution to help businesses compute the R&D tax credit, a federal tax credit that offsets development costs. Their primary goal is to turn the tedious and complex system of claiming the said credit into something simple but efficient.

Who Should Use The SPRX Tax Platform?

SPRX is a perfect solution for businesses of all sizes, especially businesses with limited manpower and expertise. SPRX can expeditiously help them claim the R&D tax credit. It’s an extra hand that’s affordable and user-friendly for qualifying R&D activities.

How SPRX Works

SPRX has a three-step process for identifying and documenting qualified research to claim tax incentives. These are:

Step 1: Gather Data

Information gathering is essential to the SPRX process. This step entails all the necessary data collection for your R&D, including payroll records, invoices, project plans, technical reports, patent application forms, and IP documentation. Any file format will do — that, along with its simplicity and support from SPRX, makes this process something that could easily be accomplished by a single person.

SPRX also has security in mind, which is why they ensure all your data is secure and can only be accessed by their team. 

It’s also important to note that this step isn’t the responsibility of SPRX but yours — although they will help any time of day if needed.

Step 2: SPRX Processes Your Data

This is the crucial part of the process — and the one that SPRX will do for you.

Once they receive all necessary information, SPRX will initiate the following six-step subprocess for R&D tax qualification:

  1. Analyze and structure your data to see how it fits the R&D requirements. 
  2. Predict eligible activities and costs.
  3. Verify predictions with experts.
  4. Create a draft of analysis memos for each project.
  5. Evaluate all documentation. 
  6. Compute federal and state credits.
  7. Prepare the necessary tax forms and reports.

Step 3: Validation and Finalization

Once SPRX completes the rest of the tasks, the only thing left to do is to validate the generated forms and reports. Experienced R&D tax credit professionals from SPRX will review the predictions and ensure they comply with IRS regulations. 

This ensures that your business is claiming the full amount of the credit that you’re eligible for and it’s the right amount of R&D tax credit to avoid an IRS audit or other potential headaches.

However, it’s important to note that SPRX will not file the tax forms for you as they exist only in a support capacity. They will provide all the reports you need, including drafts and information as outlined by the IRS, but you’ll still need to file them yourselves. In other words, they’ll do the heavy lifting — you just need to close it out. That’s it.

And yes, it’s that easy with SPRX.

Key Features of SPRX

As previously mentioned, the R&D tax credit is considered among the most complex in the business. That’s why an effective platform solution must have a wealth of features to expedite and validate the process. Fortunately, SPRX has more than enough to streamline the R&D tax credit pipeline. These include the following features:

Automations

You can’t be eligible for an R&D tax credit without proper payroll records. The problem is that most companies use payroll and G/L platforms to keep track of their employees’ compensation. Sure, you can extract the information from these systems, but that’s an extra step in an already difficult process.

Save time by directly integrating your payroll and G/L systems with SPRX. Some platforms that could directly connect to SPRX include Paychex Flex, Gusto, OnPay, and more.

Integration with Payroll & G/L Systems

You can’t be eligible for an R&D tax credit without proper payroll records. The problem is that most companies use payroll and G/L platforms to keep track of their employees’ compensation. Sure, you can extract the information from these systems, but that’s an extra step in an already difficult process.

Save time by directly integrating your payroll and G/L systems with SPRX. Some platforms that could directly connect to SPRX include Paychex Flex, Gusto, OnPay, and more.

SMS Integration

One of the reasons why you’re likely to use SPRX is to save time. That means SPRX must have an efficient and cost-effective way to collect the employee information needed to qualify for the R&D tax credit.

Short Messaging Service or SMS is how SPRX interviews your employees who had a hand in your R&D projects. This cuts down the cost and time of doing personal interviews or phone calls and directly answers important questions for R&D tax credit qualification.

Expert Support

You don't have to worry if you’re skeptical about artificial intelligence. Expert human analysts will still validate your data experienced with tax credits. Moreover, SPRX also has robust client support of solution engineers and tax experts willing to answer inquiries on R&D tax credit solutions.

SPRX Pros & Cons

PROS

CONS

  • AI-powered solution to compute R&D tax credit.

  • Drafts an analysis memo for all projects.

  • Allows input of all relevant information from research documents to payroll forms.

  • SMS for quick employee research.

  • Integration with popular payroll systems.

  • Expert audit support included.

  • SPRX is a relatively new solution to the market, and some may be hesitant to try something new and continue implementing SALY, especially when it comes to their tax software.

Final Thoughts

Fittingly, SPRX itself is an innovation, and a crucial one at that. The team behind it saw an existing problem in the market and provided an exceptional solution. SPRX ensures error-free tax statements and documents and provides ample support for all your R&D tax questions. It’s a service worth subscribing to.

That said, always remember that you must still consult with a professional before moving forward. The R&D tax credit process is long and tedious; you don’t want to prolong that over a simple mistake. If you’re hesitant to hire specialists, you can always get in touch with the SPRX team themselves.

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Written by John Angelo Yap
Hi, I'm Angelo. I'm currently an undergraduate student studying Software Engineering. Now, you might be wondering, what is a computer science student doing writing for Gold Penguin? I took up studying computer science because it was practical and because I was good at it. But, if I had the chance, I'd be writing for a career. Building worlds and adjectivizing nouns for no other reason other than they sound good. And that's why I'm here.
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