Can my architecture firm qualify for R&D tax credits? Where to find this on tax forms?

Thanks for the info! I work for a smaller engineering firm and we've never claimed this. Question - does the experimentation have to be like revolutionary science stuff? Most of our work is just solving unique problems for each project, but nothing I'd call groundbreaking research. Also, is there a minimum amount you have to spend on "research" to make it worthwhile?

The R&D credit doesn't require revolutionary breakthroughs - it's designed for exactly what you described: solving unique technical problems through a process of experimentation. If you're testing different approaches to solve engineering challenges specific to each project, that often qualifies. The key components are: identifying technical uncertainties, systematically evaluating alternatives, and documenting your process. There's no specific minimum spend, but there is a calculation involving your research expenses compared to previous years. Generally, if you have at least $100,000 in qualifying expenses (which includes a portion of wages for engineers/architects), it's worth exploring. The credit typically ranges from 6-14% of qualifying expenses depending on your specific situation.

How exactly does this work? Do they just look at your tax forms or do they need access to all your project documentation? I'm concerned about privacy with our client projects.

Sounds too good to be true. Did they actually help you file for the credits or just tell you that you qualify? And what about if you get audited - do they provide any support with that?

They start by analyzing your tax forms to identify potential opportunities, then they request specific documentation only for the projects that might qualify - they don't need access to everything. They have secure document upload and strong privacy protections since they work with sensitive financial info all the time. They actually help with the whole process - they don't just identify the opportunity. They prepare all the documentation you need, work with your existing CPA to file the amended returns (or current year return), and provide complete audit protection. If you get audited, they handle all the IRS communication related to the R&D credits at no additional cost.

Wait how is this even possible? I thought the IRS phone system was completely broken. Does this actually get you to a real person or just another automated system?

This seems like a scam. Why would I pay someone else to call the IRS for me? Can't you just keep calling until you get through? And what guarantee do you have that they'll actually connect you to someone useful?

It connects you to an actual human IRS agent - the same person you'd get if you waited on hold for 3+ hours. They use some kind of system that maintains your place in line without you having to stay on the phone. When you're about to reach an agent, they call you and connect you directly. I thought the same thing about just keeping at it myself, but after three attempts where I waited over an hour and then got disconnected, I was done. The time savings alone was worth it to me - I literally put in my number, went about my day, and got a call when an agent was ready. No guarantee on whether the specific agent can help with your issue, but at least you're talking to a real person who can transfer you if needed.

This is exactly what I was looking for, thank you! I've checked our returns and there's no Form 6765 included anywhere, so I guess we're not claiming these credits. Based on that 4-part test, I'm pretty sure at least some of our projects would qualify. We do a lot of work on complex structures with unique sustainability challenges that require significant testing and prototyping. Do you know if there are downsides to claiming these credits? Like does it increase audit risk or anything like that?

There is a slightly increased audit risk since R&D credits are scrutinized more carefully than some other deductions, but it's manageable with proper documentation. The key is to maintain thorough records of your qualifying activities - project plans, design iterations, testing results, emails discussing technical challenges, etc. The potential benefits usually far outweigh the risks. If you're confident your activities meet the four-part test and you have documentation to support it, don't let audit concerns prevent you from claiming legitimate credits. Just make sure you're working with someone experienced in R&D credits for architectural firms specifically, as they can help structure your documentation properly.

What software do you use to track this? We're a small engineering firm and our time tracking is pretty basic right now.