Common myths of the R&D Tax Credit and how to navigate them
The R&D Tax Credit is one of the most subjective areas of the tax code and many businesses believe they qualify. As a trusted advisor to CPA firms, McGuire Sponsel receives many inquiries on potential client opportunities and what types of companies should be exploring the R&D Credit. Along with these inquiries, we also receive questions related to providers directly marketing R&D Studies to businesses and CPAs being unsure of the validity of the qualifications to claim the Credit.
With the IRS placing more scrutiny on the R&D Tax Credit, it is important to be aware of common myths of the credit as well as areas of exposure when building a claim. To dispel some of these misconceptions and provide clear guidance for CPA firms and businesses that may qualify for the R&D Credit, read our weekly blog series outlining hot topics related to the R&D Credit and our approach to navigating them.
Check back every Wednesday for other articles exploring these key concepts including:
- Technical Risk versus Economic Risk
- The eligibility of certain industries to claim the R&D Credit, including dental/medical practices and construction companies
- The adaptation exclusion
- Reverse engineering and duplication versus evolutionary or revolutionary development
- Prototype/Pilot model supplies expenses
David Seibel, EA
David Seibel, EALearn moreContact David
David Seibel is an engineering senior manager for the R&D Tax Credit Practice.
He combines his knowledge of tax law with his engineering expertise to maximize companies’ research credits and reduce their overall tax burdens.
Tanner Niehaus, CPA
Tanner Niehaus is a senior consultant and CPA in the R&D Tax Credit Practice.
Tanner has expertise in qualification criteria for the R&D credit and works with clients across a variety of key industries to help them build sustainable credits.