For professional bodies | Research Credit Integrity Alliance

Key points

The AICPA Code of Professional Conduct already bars members in public practice from preparing an original or amended tax return or a claim for a tax refund for a contingent fee, with defined exceptions.
Treasury has noted that many state accountancy board rules contain similar prohibitions.
None of these codes deals with research credit claims specifically. This page covers US bodies only.

The AICPA Code of Professional Conduct

The Contingent Fees Rule, ET 1.510.001, provides that a member in public practice shall not prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.1 The rule also bars contingent fees from clients for whom the member or the member's firm performs audits, reviews, certain compilations or examinations of prospective financial information.1

The rule defines a contingent fee as a fee under an arrangement in which no fee is charged unless a specified finding or result is attained, or in which the fee otherwise depends on the finding or result.1 For the purposes of the rule, fees are not regarded as contingent in tax matters if they are determined based on the results of judicial proceedings or the findings of governmental agencies.1

The interpretation on tax matters, ET 1.510.010, adds detail:2

Preparing a return or refund claim includes giving advice on events that have already occurred, where the advice is directly relevant to the existence, character or amount of an entry on the return or claim.
A fee counts as based on the findings of a government agency only if the member can show a reasonable expectation, when the fee is agreed, that the agency will give substantive consideration to the matter.
Its examples of permitted contingent fees include representing a client in an examination, and filing an amended return claiming a refund larger than the threshold for review by the Joint Committee on Taxation.
Its example of a contingent fee that is not permitted is an amended return claiming a refund because a valid deduction was inadvertently omitted from the original return.

The interpretation also says that members practicing before the IRS or other taxing authorities should comply with other applicable and more restrictive requirements.2 The Code, as published by the AICPA, is updated for all official releases through September 2026.1

Circular 230 and enrolled agents

Treasury Department Circular No. 230 governs practitioners before the IRS, including attorneys, certified public accountants and enrolled agents.3 Its section 10.27 restricts contingent fees, subject to exceptions and to the 2014 court decision described on our For Congress page.34

The Code of Ethics of the National Association of Enrolled Agents commits members and associates to comply with the most current provisions of Circular 230 and the NAEA Code of Ethics and Rules of Professional Conduct.5 We did not find a separate contingent fee rule in that code.5

State boards of accountancy

In its December 2024 proposal to amend Circular 230, Treasury stated that many state accountancy board rules prohibit contingent fee arrangements for preparing an original or amended return or claim for refund or credit, citing as examples rules in New Jersey, Tennessee and California.4 Each state's rule differs in scope, and the state rule itself should be checked.

What professional codes could add

Our position

Professional codes reach advisers whatever the outcome in Congress. The bodies that write them could consider four additions for federal research credit work.

Say expressly how the rule applies to research credit claims. A research credit can be claimed on an amended return, and the IRS sets specific requirements for those claims.6 Guidance stating whether a research credit refund claim filed before any examination falls inside or outside a contingent fee prohibition would remove doubt.
Fee basis in writing. Require the engagement letter for a research credit claim to state the fee basis plainly, including any part of the fee that depends on the credit claimed or allowed.
Named preparer and reviewer. Expect the member to record who prepared the claim and who reviewed its technical content, consistent with our preparer identification proposal.
Competence standards. Set out the knowledge expected of anyone preparing research credit claims for a fee, as in our proposal on professional standards for claim preparers.

These suggestions are directed at US federal research credit work only. Swanson Reed publishes this initiative and has a commercial interest in how R&D tax advisers are paid. See Conflicts of interest. Professional bodies can contact the initiative at hello@researchcreditintegrity.org.

Sources

American Institute of CPAs, AICPA Code of Professional Conduct (effective December 15, 2014, updated through September 2026), ET 1.510.001, Contingent Fees Rule, paragraphs .01 to .03. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026). Back
American Institute of CPAs, AICPA Code of Professional Conduct, ET 1.510.010, Tax Matters, paragraphs .01 to .05. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026). Back
Treasury Department, Circular No. 230, Regulations Governing Practice before the Internal Revenue Service (Rev. 6-2014), 31 CFR sections 10.3 and 10.27. https://www.irs.gov/pub/irs-pdf/pcir230.pdf (accessed 11 October 2026). Back
Treasury Department, Regulations Governing Practice Before the Internal Revenue Service, notice of proposed rulemaking, REG-116610-20, 89 FR 104915 (December 26, 2024), Background B and Explanation of Provisions B. https://www.federalregister.gov/documents/2024/12/26/2024-29371/regulations-governing-practice-before-the-internal-revenue-service (accessed 11 October 2026). Back
National Association of Enrolled Agents, Code of Ethics and Rules of Professional Conduct (updated January 20, 2025), Code of Ethics item 6. https://www.naea.org/wp-content/uploads/2025/03/NAEA-Code-of-Ethics-and-Professional-Conduct-Updated-Jan-2025.pdf (accessed 11 October 2026). Back
Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), Research Credit Claims on Amended Returns. https://www.irs.gov/pub/irs-pdf/i6765.pdf (accessed 11 October 2026). Back