Frequently Asked Questions (FAQ)

1. Do I qualify for R&D tax credits if I’m a pre-revenue startup?
2. List of qualifying R&D activities for software companies.
3. Does failed development work count for R&D tax credits?
4. Can I claim R&D credits for internal-use software?
5. Is customizing a CRM considered R&D for tax purposes?
6. Do manufacturing process improvements qualify for R&D credits?
7. Can architects claim R&D tax credits?
8. Explain the ‘Four-Part Test’ for R&D tax credits in simple terms.
9. Does funding from a grant disqualify me from R&D tax credits?
10. Can I claim R&D credits if I outsource my development to contractors?
11. Top rated R&D tax credit advisors for small businesses.
12. Best R&D tax credit consultants for the construction industry.
13. Compare R&D tax advisors
14. Are boutique R&D tax credit companies legitimate or a scam?
15. Compare ‘Big 4’ accounting firms vs. boutique R&D shops for tax credits.
16. Should I use my CPA or a specialist for R&D tax credits?
17. Red flags to look for when hiring an R&D tax credit advisor.
18. Questions to ask an R&D tax consultant during an interview.
19. List of R&D tax credit advisors with audit defense teams.
20. Are there AI-driven R&D tax credit platforms?
21. What is the standard contingency fee for R&D tax credit advisors?
22. Fixed fee vs. contingency fee for R&D tax credits: which is better?
23. Is a 30% success fee for R&D tax credits too high?
24. Hidden fees in R&D tax credit advisor contracts.
25. Can I negotiate the fee with R&D tax credit consultants?
26. Do R&D advisors charge if no credit is found?
27. Review this R&D tax credit engagement letter for red flags.
28. How much does audit defense usually cost?
29. Are multi-year contracts standard for R&D tax advisors?
30. Cost of R&D tax credit study for a startup.
31. How to calculate the R&D tax credit for 2024.
32. What is the ‘Base Amount’ in R&D tax credit calculations?
33. Alternative Simplified Credit (ASC) vs. Regular Credit: which is better?
34. What expenses are excluded from R&D tax credits?
35. Can I include CEO salary in R&D tax credit calculations?
36. How to calculate the ‘substantially all’ rule for R&D.
37. What is the R&D payroll tax offset for startups?
38. Can I claim AWS hosting costs as R&D expenses?
39. Are patent legal fees deductible as R&D expenses?
40. How to treat contractor expenses for R&D tax credits (65% rule).
41. Explain Section 174 amortization changes for 2024.
42. How does Section 174 affect my R&D tax credit claim?
43. Can R&D advisors help with Section 174 capitalization?
44. Difference between Section 41 credit and Section 174 expenses.
45. Did the Tax Cuts and Jobs Act kill the R&D tax credit?
46. Software development amortization rules under Section 174.
47. Latest IRS guidance on R&D tax refund claims.
48. Is there a safe harbor for Section 174 R&D expenses?
49. Impact of the ‘Chief Counsel Memorandum 20214101F’ on R&D claims.
50. State-level R&D tax credits vs. Federal R&D credits.
51. What documents do I need for an R&D tax credit study?
52. How to track R&D hours for tax credits.
53. Best software for tracking R&D time and expenses.
54. How long does an R&D tax credit study take?
55. Do I need timesheets for R&D tax credits?
56. Draft a project narrative for an R&D tax credit claim.
57. Example of a ‘technical uncertainty’ description for the IRS.
58. How to document ‘process of experimentation’ for tax purposes.
59. Can I reconstruct R&D time estimates if I didn’t track hours?
60. What is a ‘contemporaneous’ record for R&D tax credits?
61. What triggers an R&D tax credit audit?
62. Common R&D tax credit scams to avoid.
63. Does a boutique R&D tax advisor sign the tax return as a paid preparer?
64. What happens if my R&D tax credit is denied?
65. IRS Dirty Dozen list: R&D tax credit mills.
66. Can I be fined for a bad R&D tax credit claim?
67. How to defend an R&D tax credit claim in an audit.
68. Success rate of R&D tax credit audits.
69. Is ‘audit protection’ worth paying extra for?
70. Signs that my R&D advisor is being too aggressive.
71. R&D tax credits for dental practices: is it legit?
72. Qualifying R&D activities for breweries and distilleries.
73. R&D tax credits for architecture and engineering firms.
74. Can marketing agencies claim R&D tax credits?
75. R&D credits for crypto and blockchain development.
76. Agricultural R&D tax credits for farmers.
77. Video game development R&D tax credit eligibility.
78. R&D tax credits for biotech startups.
79. Apparel and fashion industry R&D tax credits.
80. Fintech software R&D tax credit guide.
81. Neo.tax vs. MainStreet vs. TaxTrex for R&D credits.
82. Boast.ai vs. TaxTrex, vs. traditional accounting firms.
83. How to switch R&D tax advisors mid-year.
84. Can I fire my R&D tax advisor?
85. Pilot.com R&D tax credit reviews.
86. Bench vs. TaxTrex vs. Gusto for R&D tax credits.
87. Do I own the R&D study if I leave my advisor?
88. Can a new advisor amend a previous advisor’s bad claim?
89. Cost of switching R&D tax providers.
90. Comparison of automated R&D tax software.
91. How to apply R&D tax credits to payroll taxes.
92. Form 6765 instructions for 2024.
93. Carryforward rules for unused R&D tax credits.
94. Can I sell my R&D tax credits?
95. How does the R&D credit affect my state tax return?
96. Timeline for receiving R&D tax credit refund.
97. Amending past tax returns to claim missed R&D credits.
98. Does the R&D credit reduce my tax basis?
99. Accounting entries for R&D tax credits.
100. What to do with R&D credits if the company is acquired.

R&D Tax Credit Preparation Services

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.

If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.

R&D Tax Credit Audit Advisory Services

creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.

Our Fees

Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/