For many CPA firms, referring Research & Development (R&D) tax credit engagements to specialty providers has become standard practice. It seems like a simple arrangement: introduce the client, let the specialist complete the study, and move on.
But what appears to be a low-risk decision often comes with long-term costs that extend far beyond a single engagement.
As R&D tax credits become more valuable—and IRS documentation requirements continue to evolve—CPA firms should consider whether referring these engagements is the best long-term strategy for their clients and their practice.
R&D Tax Credit for Manufacturing Companies: What CPAs Need to Know
Manufacturing clients are among the strongest candidates for the federal R&D tax credit, yet many never claim it. The work that qualifies often looks like everyday operations: engineers refining a product, a production team automating a line, or a quality group testing new materials to cut scrap. For CPAs, that creates an opportunity to deliver real value by recognizing qualifying activity early. This guide covers which manufacturing activities and expenses may qualify, how the Four-Part Test applies, what documentation matters, and the questions that can help uncover R&D opportunities with your clients.
Does My Business Qualify for the R&D Tax Credit? The 4-Part Test Explained
"Does my business qualify for the R&D tax credit?" — this guide breaks down the IRS 4-part test, what counts as a business component, and which expenses qualify.
How CPA Firms Can Add R&D Tax Credit Services Without Adding Risk
As compliance work becomes automated, CPA firms are increasingly looking to the R&D tax credit already sitting in their client base to grow advisory revenue—and while concerns about technical eligibility, documentation, and staffing often hold firms back, offering it in-house doesn't require building a specialty practice from scratch.