IDR guide
Common R&D Credit IDR Requests (and How to Prepare)
An overview of common topics included in federal R&D tax credit IDRs, with practical preparation guidance for finance and engineering teams.
Updated August 2026
Project Lists and Narratives
Common requests include a complete project list, descriptions of technological uncertainty, alternatives considered, and how success was evaluated. Keep narratives factual, specific, and supported by contemporaneous records.
Wage and Time Support
Examiners may request information about how qualified wages were identified, which employees worked on specific projects, and what timekeeping or allocation methods were used. Ensure qualified wage totals can be reconciled to payroll records and supporting documentation.
Supplies and Contract Research
Supply costs should be clearly connected to qualified research activities. Contract research requires careful consideration of substantial rights and economic risk under the applicable regulations. Both contractual agreements and invoices should be reviewed when substantiating these costs.
Base Period and Methodology Consistency
Questions about base-period calculations, consistency of methodology, and changes in project definitions are common. Document the basis for the methodology used and explain any changes clearly and consistently.
How BLMC Helps
BLMC provides pre-audit readiness reviews and IDR response support tailored to common R&D tax credit examination requests. Our team can assist with organizing supporting documentation, reviewing responses, and preparing materials for examination.
Get IDR Response Support
A consultation can help you understand outstanding information requests, assess your current position, and determine whether to prepare for an upcoming review or respond to an active examination.