Business Services
Explore our services designed to identify, document, and support R&D tax credits and related incentives for qualifying business activities.
Research & Development Credits
What is an R&D Tax Credit Study?
An R&D Tax Credit Study is a structured analysis designed to identify and substantiate qualifying research activities and expenditures under federal and applicable state R&D credit regulations.
The R&D tax credit provides a dollar-for-dollar credit against tax liability for certain wages, supplies, and contract research costs incurred in the development or improvement of products, processes, software, or technology. These credits are claimed in addition to ordinary business deductions and may be available across a wide range of industries.
How the study works
BAY conducts a detailed review of a company’s operations to:
Identify qualifying research activities based on the applicable technical criteria
Analyze payroll, supplies, and contract research expenses eligible for the credit
Develop contemporaneous documentation aligned with IRS and state requirements
The study is designed to support accurate credit calculation, defensible positions, and consistency with tax filings, whether credits are claimed currently or carried forward.
Key benefits
Dollar-for-dollar tax credits for qualifying research expenditures
Comprehensive documentation supporting credit eligibility and compliance
Applicability across industries and company sizes, including early-stage and growth companies
Improved cash flow to support continued investment in innovation
Employee Retention Tax Credit (ERC): Denied Claims Advocacy
What is ERC claim defense?
ERC claim defense is a specialized review and advocacy service designed for employers whose Employee Retention Credit (ERC) claims were denied, reduced, or incorrectly calculated by the IRS.
Although the ERC is a legacy COVID-era program, many eligible claims have been denied due to misapplied eligibility standards, evolving IRS guidance, or calculation errors. In appropriate cases, these determinations can be challenged and corrected through a well-supported, technically grounded defense.
How the review and defense process works
BAY conducts a focused evaluation to determine whether a denied ERC claim can be successfully defended. This includes:
Reviewing the original claim and IRS correspondence
Reassessing eligibility based on operational disruptions, scaling constraints, or partial suspensions
Analyzing wage calculations and interaction with PPP loan forgiveness
Aligning facts with the applicable statutes, legislative changes, and IRS guidance in effect for the relevant periods
The ERC underwent multiple legislative and interpretive changes between 2020 and 2025, particularly with respect to PPP interaction and retroactive eligibility. As a result, many denials stem from outdated or incorrect interpretations rather than true ineligibility.
Following an initial consultation, BAY advises whether a claim is supportable and defensible, and outlines the appropriate path forward.
Why ERC claims were frequently denied
Common drivers of ERC denials include:
Conflicting IRS guidance issued during early stages of the program
Misinterpretation of partial suspension or operational impact criteria
Incorrect exclusion of wages due to PPP loan participation
IRS calculation or processing errors
Despite the program’s expiration, retroactive claims and claim defenses remain available for qualified employers with eligible quarters.
Key benefits
Independent assessment of denied or reduced ERC claims
Technically grounded defense strategy based on current law and guidance
Clear determination of claim viability before pursuing further action
CPA-led review focused on accuracy, compliance, and defensibility
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