How to eliminate the burden of R&D tax credit compliance

Research and development (R&D) credit reporting has evolved from a routine task into a strategic priority for corporations. With legislation like the One Big Beautiful Bill Act (OBBBA) and the new Form 6765 Schedule G raising the compliance burden, relying on manual processes or expensive consultants is no longer sustainable. Teams require faster, more reliable ways to manage R&D credit claims with confidence.

To meet this need, Thomson Reuters and Neo.Tax have partnered to deliver an artificial intelligence (AI)-powered solution that simplifies the R&D credit process. This integration strengthens audit readiness and fits naturally into existing ONESOURCE workflows, helping teams work smarter and more efficiently.

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The triple burden: time, risk, and cost

For many corporate tax departments, the R&D credit process is defined by three persistent pain points:

The time drain: Tax and R&D teams often spend over 200 hours annually coordinating interviews, gathering documentation, and validating estimates. This manual effort not only strains resources but also delays filing and increases the risk of errors.
The audit risk: Interview-based estimates and after-the-fact documentation fall short of Internal Revenue Service (IRS) standards. This can lead to audit adjustments that reduce credit claims by 10% or more, putting companies at financial and reputational risk.
The cost trap: Traditional accounting firms charge exorbitant fees, ranging from $100k to $500k. These fees reduce the value for companies where every dollar counts towards innovation and growth.

ONESOURCE + Neo.Tax: A seamless, AI-powered solution for R&D compliance

Neo.Tax was built by a Stanford PhD in machine learning and a former IRS agent, with the goal of simplifying R&D credit compliance through automation and artificial intelligence. When integrated with ONESOURCE Income Tax, it offers a unified workflow that eliminates the triple burden and supports measurable improvements.

Here’s how it works:

AI-powered analysis: Neo.Tax connects payroll, project management, and accounting systems via API to identify and calculate qualified R&D expenses. These integrations can eliminate the need for time surveys and technical interviews.
Effortless Form 6765 filing: The platform directly populates Form 6765 within ONESOURCE, eliminating manual data entry and reducing filing time from weeks to days.
Audit-ready documentation: Ticket-level data and contemporary calculations meet IRS standards, providing robust defense in case of audit.
Enterprise-grade security: Service Organization Control (SOC) 2 Type 2 and IS027001 compliance and private cloud deployment options ensure data integrity and confidentiality.

Advantages of a modern R&D tax credit process

Whether you’re a mid-sized business or a global enterprise, the ONESOURCE and Neo.Tax integration delivers tangible value:

Time efficiency: Up to 150 hours + saved annually through automation and streamlined workflows.
Accurate provision: AI-driven calculations based on real-time data enable an on-time, accurate provision instead of rough estimates.
Scalability: Easily manage R&D tax credit processes across multiple entities and jurisdictions.
Cost savings + lower Fin 48: Companies report 50–75% savings compared to accounting firm fees and 20-30% lower Fin 48 reserves compared to interview-driven studies.

Why this matters now: The October 15th deadline

With the October 15, 2025, R&D tax credit filing deadline fast approaching, tax teams are under pressure to improve efficiency, accuracy, and compliance. ONESOURCE and Neo.Tax not only meet IRS requirements, but they also help businesses avoid last-minute scrambles and costly delays.

This urgency is amplified by recent legislative changes that have reshaped how R&D credits are calculated and documented. Automation and audit-ready processes are no longer optional. They are essential.

Key legislative changes driving urgency

Section 174 reform under the OBBBAThe One Big Beautiful Bill Act (OBBBA) reinstates immediate expensing of domestic R&D costs starting in 2025. Some businesses can now amend prior returns or take catch-up deductions, which makes accurate documentation and automation more critical than ever.
The compliance burden of Form 6765 – Schedule GThe IRS has increased the compliance burden for Form 6765, requiring qualified expenses to be tracked at the business component level starting in 2025. Neo.Tax’s ticket-level tracking and AI-powered calculations directly address these compliance challenges.

What’s new in 2025

Immediate expensing of domestic R&D under Section 174 (OBBBA)
Increase compliance burden with new Form 6765, Schedule G
Amended return options for small-medium businesses (SMBs) (≤ $31M receipts)
Catch-up deductions for larger businesses
Enhanced IRS review of Form 6765
Increased demand for automation and audit-ready processes

Tailored R&D tax credit automation for every business

Whether you’re an SMB, an enterprise, or an existing ONESOURCE user, Neo.Tax delivers scalable, compliant solutions that fit your workflow:

For SMBs (< $500M revenue):Neo.Tax offers a flat annual fee that eliminates unpredictable billable hours. With ONESOURCE already in place, SMBs can unlock the full value of their tax technology investment by automating R&D credit compliance.

For Enterprises (> $500M revenue):Scale your R&D credit process across entities with enterprise-grade AI and seamless integration into your existing ONESOURCE infrastructure. No new systems, no workflow disruption—just streamlined compliance aligned with IRS standards.

For Existing ONESOURCE customers:If you’re already using ONESOURCE Income Tax, you’re halfway there. Neo.Tax completes the solution by automating R&D credit calculations and filing directly within your current workflow.

Built for the future of tax compliance

Neo.Tax isn’t just a tool, it’s a strategic enabler. As recent legislation such as OBBBA continues to influence tax reporting standards and R&D credit eligibility, AI-powered automation helps tax teams stay proactive, accurate, and aligned with evolving requirements.

Key features include:

Section 174 assistance and amortization tools
State-level QRE tracking
Human-reviewed claims for quality assurance
Collaborative workspace for tax, R&D, and advisory teams

This is the kind of future-ready compliance that tax leaders have been asking for, and now it’s available through a trusted partnership between Thomson Reuters and Neo.Tax.

Take the next step with ONESOURCE and Neo.Tax

Consider how modern approaches can improve your current processes. With ONESOURCE and Neo.Tax, you can help mitigate the triple burden of cost, time, and risk—while supporting greater efficiency and strategic alignment.

With the October 15th deadline approaching, now is the time to modernize your R&D credit strategy. Whether you’re filing amended returns or preparing for catch-up deductions, ONESOURCE and Neo.Tax offer the automation and compliance tools you need to stay ahead.

Explore the ONESOURCE and Neo.Tax R&D tax credit process to see how this integration can transform your R&D credit strategy before the October 15th deadline.