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

Latest Blogs

  • blog
    R&D Tax
    June 22, 2022

    R&D Tax Credits for the Construction Sector

    by David Seibel & Tanner Niehaus

    The construction sector and related industries hold many misconceptions as it relates to the R&D Credit. There are a number...

  • blog
    R&D Tax
    June 15, 2022

    The R&D Adaptation Exclusion

    by David Seibel & Tanner Niehaus

    A commonly misunderstood exclusion of the R&D Credit is the Adaptation Exclusion. Due to its intricacy, this exclusion has been...

  • blog
    R&D Tax
    June 8, 2022

    R&D Tax Credits for the Healthcare Sector

    by David Seibel & Tanner Niehaus

    The healthcare sector is ever evolving and ripe with R&D activities, but what activities and business practices are eligible for...

  • blog
    R&D Tax
    June 1, 2022

    Technical Risk v. Economic Risk

    by David Seibel & Tanner Niehaus

    For a successful R&D Credit claim, a taxpayer must demonstrate that it bears the technical risk of developing an appropriate...

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.

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    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.