Editor’s note This article was originally published by Gold Penguin and authored by John Angelo Yap. It is republished here with permission for reference purposes. Minor formatting edits were made for clarity. The opinions expressed are those of the author and do not constitute tax or legal advice.

Overview

Filing for an R&D tax incentive is widely considered one of the most complex and labor-intensive processes in business taxation. The R&D tax credit, filed on IRS Form 6765, is designed to reward companies for investing in research and development by allowing eligible taxpayers to offset certain federal tax liabilities.

SPRX is an AI-powered software platform built to support companies through the R&D tax credit documentation and analysis process. This review examines how SPRX approaches R&D credit workflows and where it may fit for businesses seeking a more structured alternative to traditional methods.

What is SPRX?

SPRX is a software platform founded in 2020 by Mark Andrus and Dominic Vitucci. The company focuses on helping businesses compute and document R&D tax credits by applying automation and structured analysis to historically manual processes.

The stated goal of SPRX is to simplify the preparation of R&D credit documentation while maintaining alignment with IRS requirements.

Who may benefit from using SPRX?

SPRX may be a fit for companies that engage in qualifying research activities and want to reduce the internal effort required to prepare R&D tax credit studies. This includes businesses with limited in-house tax resources, as well as organizations seeking a more standardized approach to documentation.

How SPRX works

SPRX follows a three-phase workflow:

Step 1: Data collection

Companies provide relevant information related to their R&D activities, including payroll records, general ledger data, project documentation, and supporting materials. Files can be submitted in their native formats, and SPRX supports integrations with certain payroll and accounting systems.

Step 2: Data processing and analysis

SPRX analyzes submitted data to identify activities and costs that may qualify for the R&D tax credit. The platform generates draft documentation and project-level analyses, which are reviewed and validated by experienced R&D tax professionals.

Step 3: Validation and reporting

Once analysis is complete, SPRX produces reports and tax forms consistent with IRS guidance. SPRX does not file tax returns on behalf of customers, but provides materials intended to support filing by the company or its tax advisor.

Key features

• Integration with payroll and general ledger systems

• Automated workflows for collecting employee input

• AI-assisted analysis reviewed by tax professionals

• Documentation designed to support substantiation requirements

• Access to support from tax and technical specialists

Pros and considerations

Potential benefits

• Reduced reliance on spreadsheets and manual interviews

• Structured documentation workflows

• Combination of automation and professional review

Considerations

• Companies remain responsible for providing accurate source data

• SPRX does not file tax returns directly

• Results depend on the completeness and quality of submitted information

Final thoughts

SPRX represents a technology-forward approach to R&D tax credit preparation. By combining automation with professional oversight, the platform aims to reduce administrative burden while supporting documentation consistency. Companies evaluating R&D tax credit solutions may find SPRX useful as part of their broader tax compliance process.

Original source

Gold Penguin — “SPRX Review: The AI-Powered R&D Tax Credit Software”
Author: John Angelo Yap
Originally published October 10, 2023