What to expect from First-Time Claimant Advisory Service?

First-time claimant advisory service (FTCAS) is a free, mandatory service provided by the Canada Revenue Agency (CRA) for companies filing their first SR&ED tax credit claim. Here are the key aspects:

• The claim is pre-approved before the FTCAS meeting occurs, and you receive 100% of the requested amount
• It involves a meeting either via video/teleconference or in-person with CRA SR&ED staff
• The purpose is educational rather than evaluative (not an audit)

Benefits of FTCAS:

• Faster processing and payment compared to full audits
• Increases chances of "Accepted as Filed" status for future claims
• Provides guidance on improving future claims

What Happens During FTCAS

• Meeting typically takes 1-2 hours
• Led by 2 CRA representatives (technical and financial reviewers)
• They cover:
  • Overview of SR&ED program
  • Technical eligibility requirements
  • Financial aspects
  • Documentation requirements
  • How to prepare future claims
• Reviewers may discuss claimed projects in detail but cannot reduce/deny the claim

How to Prepare for FTCAS

1. Review project hypotheses and technical challenges with your team
2. Document what was known/unknown when projects began
3. Review claim details
4. Have relevant documentation ready

Post-Meeting

• You'll receive a written report with recommendations for improvement
• Notice of Assessment and payment will be processed after the meeting
• The reviewer's notes could affect the likelihood of future audits

The FTCAS represents a significant shift in how CRA handles first-time claims, focusing on education and support rather than strict evaluation. Success in FTCAS can set up a positive relationship with CRA for future claims.