Software ATG – Summary of Recommended Audit Procedures
To assist in focusing upon those software development activities at greatest risk of not constituting qualified research under I.R.C. § 41(d), activities are identified, analyzed, and rated as “high risk”, “moderate risk”, or “low risk”. For the purpose of these guidelines, risk is defined as follows:
- High risk means that these activities usually fail to constitute qualified research under I.R.C. § 41(d).
- Moderate risk means that these activities often fail to constitute qualified research under I.R.C. § 41(d).
- Low risk means that these activities rarely fail to constitute qualified research under I.R.C. § 41(d).




