About
Neo.Tax brings AI to one of the most labor-intensive areas of corporate tax compliance: R&D tax credits and software capitalization. Traditionally, these processes require extensive after-the-fact interviews, manual data collection, and expensive third-party advisors. Neo.Tax flips this model by integrating directly with engineering tools and systems — Jira, GitHub, and similar platforms — to passively collect the contemporaneous documentation the IRS considers the gold standard for §41 R&D tax credit claims. The platform's AI is purpose-built to work with messy and incomplete data, making it practical for real-world engineering environments. Every output is fully traceable to the source data, down to the hour-level detail, ensuring there is no 'black box' — auditors and tax professionals can review and verify every conclusion the system draws. For software capitalization under ASC 350-40, Neo.Tax automates the classification of development costs in real time, eliminating the need for periodic manual reviews. Tax and accounting teams simply review AI-generated results rather than conducting exhaustive employee interviews, dramatically reducing workload and improving accuracy. Neo.Tax is trusted by tax departments at companies like Thomson Reuters, Red Ventures, and Mercury. It is designed for enterprise tax teams, Big Four and regional accounting firms, and any organization investing heavily in software development that wants to maximize R&D tax benefits while minimizing compliance overhead.
Key Features
- Automated R&D Tax Credit Studies (IRC §41): Replaces after-the-fact employee surveys and interviews with AI-generated contemporaneous documentation that meets the IRS gold standard for §41 R&D credit claims.
- Real-Time Software Capitalization: Integrates with engineering tools to automatically classify and capitalize software development costs under ASC 350-40 in real time, eliminating periodic manual reviews.
- Engineering Tool Integrations: Passively ingests data from existing developer workflows (e.g., Jira, GitHub) so engineering teams don't change their processes or fill out additional forms.
- Fully Traceable, Audit-Ready Outputs: Every AI conclusion is traceable to source data down to the hour level — no black box — making outputs immediately defensible in an IRS audit.
- AI Built for Messy & Incomplete Data: Proprietary AI models are designed to handle the incomplete, inconsistent, and unstructured data typical of real engineering environments, ensuring reliable results even with imperfect inputs.
Use Cases
- A corporate tax team at a mid-to-large technology company uses Neo.Tax to automate their annual IRC §41 R&D tax credit study, eliminating dozens of engineer interviews and cutting the process from three months to under two weeks.
- A Big Four accounting firm deploys Neo.Tax for multiple clients to generate audit-ready R&D credit documentation, reducing advisor hours and improving the accuracy and consistency of deliverables.
- A SaaS company's finance team integrates Neo.Tax with their Jira and GitHub environments to automatically capitalize software development costs in real time, keeping their ASC 350-40 reporting current without manual quarterly reviews.
- A VP of Tax at a digital media company uses Neo.Tax to replace an expensive third-party R&D advisor, achieving a dramatically higher ROI while producing a more defensible and detailed credit study.
- An in-house tax compliance manager at a fintech startup leverages Neo.Tax to conduct their first formal R&D tax credit claim, using the platform's traceable outputs to confidently file and substantiate the credit without prior R&D study experience.
Pros
- Dramatically Reduces Time and Cost: Cuts the R&D tax credit study timeline from months to days and eliminates the need for expensive external advisors and lengthy employee interview cycles.
- Transparent & Auditor-Friendly: Fully traceable outputs mean tax professionals and auditors can verify every data point, making the platform defensible in IRS examinations.
- Non-Disruptive to Engineering Teams: Engineers don't need to change workflows, fill out surveys, or participate in interviews — Neo.Tax works passively in the background using existing tool data.
- Unified Workflow for Tax and Finance: Handles both R&D tax credits and software capitalization in a single platform, streamlining compliance across the tax and finance functions.
Cons
- Enterprise-Focused Pricing: Neo.Tax is primarily designed for larger enterprises and accounting firms; pricing and positioning may put it out of reach for early-stage startups or small businesses.
- Requires Engineering Tool Integration: The platform's core value depends on connecting to existing developer tools; organizations without standardized engineering workflows may see reduced benefit.
- Narrow Use Case Scope: Neo.Tax is purpose-built for R&D tax credits and software capitalization — it is not a general-purpose tax or accounting platform.
Frequently Asked Questions
What is Neo.Tax and who is it for?
Neo.Tax is an AI-powered tax compliance platform built for corporate tax teams and accounting firms. It automates R&D tax credit studies under IRC §41 and software capitalization reporting under ASC 350-40 by integrating with engineering tools to passively collect required documentation.
How does Neo.Tax eliminate the need for employee interviews?
Neo.Tax connects to engineering tools like Jira and GitHub to extract contemporaneous project and activity data automatically. This passive data collection replaces traditional after-the-fact interviews and surveys that are normally required to document qualifying R&D activities.
Is Neo.Tax output acceptable to the IRS?
Yes. Neo.Tax generates contemporaneous documentation — the IRS gold standard for §41 R&D tax credit substantiation. All outputs are fully traceable to source data, making them audit-ready and defensible in an IRS examination.
What engineering tools does Neo.Tax integrate with?
Neo.Tax integrates with common engineering and project management tools used by software development teams (such as Jira and GitHub) to passively collect activity data. Contact Neo.Tax directly for the full list of supported integrations.
How long does it take to generate an R&D tax credit study with Neo.Tax?
Neo.Tax is designed to reduce the traditional months-long R&D study process to a matter of days. Tax professionals review AI-generated results rather than starting from scratch, significantly compressing the overall timeline.
