Our Fees Explained | A Transparent and Conservative Approach

Reflecting on our conservative philosophy, Swanson Reed is committed to transparent fee structures that mitigate risk. We prioritize hourly or fixed-fee engagements because a contingency model creates an incentive to maximize claim values, a motivation that directly conflicts with our conservative approach to claim preparation and risk management.

While fixed fees is our standard practice, we can offer contingency fees in limited circumstances for experienced clients who fully understand the risks involved in the R&D claims process.  In these cases we will apply a separate risk policy, per the guidelines of our ISO:31000-Risk Management accreditation (see table below), and where relevant ‘chinese walls’ or virtual barriers that will apply to all staff involved in the revelant claim, to ensure each is focused on their own specific tasks and that the contingency arrangement is not causing any conflict.

Time Billing Approach:

Based on the hourly rates of the individual involved in the assignment and the amount of time expended on the job. Currently, our hourly rates range from $195 - $395 per hour.

Fixed Fee Approach:

Under this option our fees are solely a function of the benefit that is received as a result of our efforts. Where there is no benefit, we will not charge any fee, regardless of how much time we spend on the assignment.

Hybrid Fee Approach:

Representing a mix of our scheduled rate approach and fixed fee option.

No charge for 'out of pocket' expenses:

Swanson Reed will not charge for disbursements. Rarely, where there is an unforeseen and substantial cost to us, and that cost is necessary to the assignment, we will mutually agree that cost in advance.

 

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Software Development Claim | Fee Example | R&D Tax Credit Review

• The Project: A tech startup is creating a new mobile app that uses a proprietary algorithm to analyze user data in real-time and provide personalized financial advice.
• The Uncertainty: The team isn’t sure how to process the massive volume of data in real-time on a mobile device without causing significant battery drain or performance issues. They try multiple different data compression techniques and processing architectures, with many failed experiments and iterations.
• The Claim: The company can claim the R&D tax credit for the time and costs associated with the experimentation, testing, and development of the new algorithm and its implementation to overcome the technical uncertainty.
•  Job Scope:  This client has prepared their own claim and wants a 3rd party review.  The client hired one of Swanson Reed’s consultant to review their claim for 2 hours.
• The Fees:  $195 x 2 hours = $390

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Food & Beverage Claim | Fee Example | R&D Tax Credit Audit Information Documentation Request (IDR) Preparation

• The Project: A food manufacturer wants to create a new line of protein bars with a longer shelf life without using any artificial preservatives.
• The Uncertainty: The team is uncertain which combination of natural ingredients will allow the product to remain stable and palatable for an extended period. They test various combinations of natural sweeteners, binders, and fruit extracts, experimenting with different ratios and processing methods.
• The Claim: The company can claim the R&D credit for the time spent on formulating, testing, and analyzing the various ingredient combinations and processing techniques to solve the scientific uncertainty of natural preservation.
• Job Scope:  This client has recieved an IRS audit and has asked a Swanson Reed director to prepare their 4th Information Documentation Request (IDR).  It take 2hrs to prepare the request.
• The Fees: $395 x 2 hours = $790

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Manufacturing & Engineering Claim | Fee Example | R&D Tax Credit Technical Consulting Assistance

• The Project: An engineering firm is designing a new type of lightweight drone for commercial delivery.
• The Uncertainty: The team is unsure how to design a new wing and motor system that maximizes lift and stability while minimizing weight. They build and test multiple prototypes, conducting a series of aerodynamic experiments and using new composite materials that have never been applied in this way.
• The Claim: The company can claim the costs related to the salaries of the engineers and designers, the materials used for the prototypes, and the expenses for the testing and analysis that was required to resolve the technical uncertainties.
• Job Scope:  This client has asked for one of directors with a professional engineering qualification to conduct a 1hr training session with their engineering team on the IRS 4-part test.
• The Fees: $395 x 1 hour = $395

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Our ISO31000 Risk Management Compliance Framework to ensure Fee Transparency and a Conservative approach

The table below consolidates the key elements of Swanson Reed’s trust and compliance framework, detailing their implications for clients.

Framework Element	Description	Implication for Clients
Six-Eye Review	A mandatory internal review of every claim by a qualified engineer, a scientist, and a CPA or Enrolled Agent.	Ensures the claim is technically sound, financially accurate, and compliant with tax law, maximizing defensibility.
ISO 31000:2009 (Risk Mgmt)	Where a contingency or success fee can not be avoided,  a separate internal conflict register for staff involved in the claim that meets ISO31000 standards	Provides objective, third-party validation of the firm’s commitment to mitigating client tax risk.
ISO 27001 (Info Security)	A leading global standard for establishing and maintaining an information security management system (ISMS). All staff will have virtual barriers and focused on their part of the claim.  They will not have an association during the engagement with other staff members working on the costing segments of the claim	Guarantees the highest level of protection for sensitive intellectual property and confidential financial data.
IRS CE Provider	Approved by the Internal Revenue Service to provide continuing education credits to Enrolled Agents.  Swanson Reed will continue to train internal staff to the IRS CE standardson risks in preparing an R&D claim	Signifies a level of expertise and trustworthiness recognized by the U.S. federal tax authority.
NASBA CPE Provider	Certified by the National Association of State Boards of Accountancy to provide continuing education to CPAs. Swanson Reed will continue to train internal staff to the NASBA CPE standards on risks in preparing an R&D claim	Establishes the firm as an authority in its field, trusted to educate other accounting professionals.
BBB Accreditation (A+ Rating)	Accredited by the Better Business Bureau with the highest possible rating for ethical business practices.  Swanson Reed will request feedback either positive or negative from the client on the conclusion of the engagement. Here if a conflict arises, the client can make that conflict public.	Confirms a strong track record of client satisfaction and a commitment to resolving issues transparently.

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