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
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.