TL;DR

Many companies ask: “Should I go through my CPA or a specialist for the R&D tax credit?” While CPAs are essential for tax filing, many don’t have the depth of expertise needed to maximize R&D claims across industries. Specialists combine tax knowledge with technical industry expertise, helping businesses capture the full credit while ensuring compliance. For most companies, the best results come from a partnership between your CPA and a specialist.

Why the Question Matters

The R&D tax credit can provide tens or hundreds of thousands of dollars in annual savings. But the benefit depends on:

• Identifying all qualifying activities.
• Calculating credits correctly.
• Ensuring documentation is IRS-defensible.

A generalist CPA may not be equipped to handle the complexity. On the other hand, a specialist without CPA oversight may miss integration with your broader tax strategy. Choosing the right approach is critical to both value and compliance.

What CPAs Bring to the Table

Your CPA is indispensable when it comes to:

• Overall tax strategy – ensuring R&D credits fit into your broader financial picture.
• Filing requirements – properly submitting credits with federal and state tax returns.
• Integration with other credits/deductions – avoiding conflicts or overlaps.

But here’s the challenge: the R&D credit is highly specialized. Most CPAs only see a few cases each year, and IRS rules change frequently.

Where CPAs Often Struggle

• Industry knowledge gaps. CPAs may not know how innovation looks in fields like A/V, marine, construction, or agriculture.
• Overly conservative claims. To reduce audit risk, many CPAs under-claim, leaving money on the table.
• Limited documentation support. They may not help track prototypes, testing, or time allocations.
• Reactive approach. CPAs often wait until year-end, missing opportunities to track activities in real time.

This doesn’t mean CPAs aren’t valuable, it means they may not be the only resource you need.

What Specialists Provide

R&D specialists focus exclusively on this credit. They bring:

• Technical expertise. Engineers, scientists, or industry experts who understand how your daily work qualifies as R&D.
• Deep knowledge of IRS rules. Specialists follow case law, audit trends, and legislative updates.
• Maximized claims. They identify activities and costs that CPAs may miss.
• Defensible documentation. Specialists know exactly what the IRS expects in an audit.

Risks of Going With Only a Specialist

• Lack of integration. Without your CPA, credits may not align with your overall tax plan.
• Missed deductions/overlap. A specialist may not have full visibility into your broader filings.
• Extra coordination. If your CPA isn’t looped in, you may face communication gaps.

The Best Approach: Collaboration

The most effective R&D claims usually come from a partnership between your CPA and a specialist.

• The CPA ensures the credit integrates into your tax filings and overall financial strategy.
• The specialist uncovers qualifying activities, maximizes the value, and ensures defensibility.

This collaborative model gives companies confidence that their credit is both optimized and secure.

Real-World Example

• Scenario 1: A boating manufacturer uses only their CPA. The CPA captures some R&D wages but overlooks materials, prototypes, and contract engineering costs. The company claims a credit worth $50K; far less than the $200K they were eligible for.
• Scenario 2: A software firm uses only a specialist. The claim is maximized, but state filing issues create conflicts with other credits, requiring costly amendments.
• Scenario 3: A construction company works with both. The specialist documents projects and ensures defensibility, while the CPA integrates credits into filings. The company claims the full credit while staying compliant.

How to Decide What’s Right for You

Ask yourself:

1. Has my CPA ever filed an R&D claim before? If so, to what extent, and how do they go about it? Can they explain how they can get you your max benefit and what the process is for determining maximum eligibly? If not, you’ll likely benefit from a specialist.
2. Do we work in a complex or niche industry? (A/V, boating, software, construction, etc.) If so, a specialist adds major value.
3. Am I concerned about an IRS audit? Specialists ensure documentation meets requirements and are able to stnad with you thoughout that process, should it occur.
4. Do I want to maximize ROI? A specialist almost always finds more qualifying, defencable activity than a generalist CPA.

The Cost of Getting It Wrong

Choosing the wrong approach can lead to:

• Leaving money unclaimed. Under-claiming reduces your credit by tens or hundreds of thousands.
• Audit exposure. Over-claiming or poor documentation invites scrutiny.
• Missed retroactive opportunities. Failure to capture prior years means dollars lost forever.

The Verdict

So, should you go through your CPA or a specialist?

• If you want a minimal claim that’s “safe” but small, your CPA may suffice.
• If you want a maximized, compliant, and defensible claim, a specialist is essential.
• For the best outcome, use both in partnership.

Final Thoughts

The R&D tax credit is too valuable to risk under-claiming, or claiming incorrectly. CPAs play a vital role in your overall tax strategy, but when it comes to R&D, specialists bring the depth and industry knowledge needed to maximize the benefit.

At B10 Capital, we work hand-in-hand with CPAs and advisors to ensure every claim is optimized, compliant, and defensible. If you’re wondering whether to go through your CPA or a specialist, the answer is: both, working together.

Contact B10 Capital today to see how we can partner with you and your CPA to secure the R&D tax credit.

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