BCP’s Tax Service Division has been built on applying engineering know-how and “out of the box” thinking to solve and support tax issues and positions.  BCP has supported companies since 2003 in identifying, substantiating, and defending accelerated deductions and credits at both the Federal and State levels.

 

One of the primary challenges facing tax departments is having the engineering technical expertise to adequately justify and defend tax claims.  We understand how to talk and maneuver within organizations to maximize internal cooperation and understanding. BCP has successfully defended claims at the IRS examination and Appeals level.  Learn more about our tax support services below:

  • Section 174 and 41 Research and Experimentation Studies

    BCP’s “Engineering First” study methodology provides audit proof substantiation.  Our approach varies from the traditional accounting firm models in that our trained engineering and tax team directly tie activities and expenses to ensure the appropriate nexus is established and that the appropriate level of substantiation is provided.  We have a proven track record of success including recognition by IRS Exams and Appeals as providing a superior deliverable. We have a proven, systematic 20-step process that ensures consistent, accurate, and defendable results.

  • Cost Segregation/Unit of Property Studies

    BCP’s cost segregation studies provide a means to identify facility components that can be appropriately reclassified into asset categories that result in accelerated deduction recovery periods.

  • Pollution Control Equipment Studies

    A number of states offer property tax discounts for equipment and systems that meet pollution control standards.  BCP provides the technical engineering justification and rationale to reclassify assets.

  • Tax modeling – Warrant Cost Modeling

    BCP has developed several analytical models that support various tax positions.  We developed a data driven risk and statistical based model to calculate an estimate of the cost of warranties associated with routine and non-routine capital purchases.  This model applies the principles of Probability Risk Analysis (PRA) and provides clients with a reliable and defendable method to justifying accelerated deductions associated with warranty costs.

Section 174 and 41 Research and Experimentation (R&E) Tax regulations provide companies of all sizes and from most industries the ability to receive economic incentives for innovation.  If you’re a company that invests in attempting to design, develop, or improve products, processes, techniques, formulas, inventions, or software; you may be eligible for this benefit.

 

Our study methodology places the utmost importance on understanding your needs and concerns; and integrates that knowledge into our process to ensure projects provide a complete audit trail and supporting documentation to defend your tax claim.  BCP has been working in this area since 2003 and has experience with Fortune 500 companies and small/medium sized business that include:

  • Electric and Gas Utilities
  • Oil and Gas Companies
  • Pharmaceutical Companies
  • Construction Companies
  • Engineering Firms
  • Landfill Companies
  • Paper Industry Companies

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