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Policy Brief No. 13

Accountability of claim preparers (brief)

This paper sets out research and the publisher's opinion. Factual statements are cited to their sources. It makes no allegation about any firm or person not named in a cited official record.

A summary of how five countries identify the advisers who prepare research and development tax claims, the penalties that can reach them, and where responsibility for an incorrect claim rests. Factual only.

ResearchCreditIntegrity.org is operated by SR Tax Services LLC under the Swanson Reed brand. Swanson Reed is an R&D tax advisory firm with a commercial interest in how R&D tax advisers are paid. See our conflicts of interest statement.

Key points

  1. Canada's SR&ED claim form must name every paid claim preparer, with the billing arrangement and the fee, and the preparer is jointly liable for a $1,000 penalty if that information is false or missing.1Source 1Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).2Source 2Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 935 to 975. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026).
  2. The United Kingdom asks for every agent involved in an R&D claim.3Source 3HM Revenue and Customs, Additional information you must submit before you claim Research and Development tax relief, section "Contact details". https://www.gov.uk/guidance/submit-detailed-information-before-you-claim-research-and-development-rd-tax-relief (accessed 11 October 2026).
  3. In the United States the signing preparer is identified on the return, but Form 6765 does not ask who prepared the research credit calculation.4Source 4Treasury Department and Internal Revenue Service, 26 CFR 1.6109-2, paragraphs (a)(1) to (a)(3), and 26 CFR 301.7701-15, paragraphs (b)(1) and (b)(2)(i). https://www.ecfr.gov/current/title-26/section-1.6109-2 and https://www.ecfr.gov/current/title-26/section-301.7701-15 (accessed 11 October 2026).5Source 5Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), read in full. https://www.irs.gov/instructions/i6765 (accessed 11 October 2026).
  4. In every country reviewed, preparer penalties require proof of fault, and the claimant repays an incorrect credit.6Source 6Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsections (a), (b) and (e), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026).7Source 7Office of the Law Revision Counsel, 26 U.S.C. 6676, Erroneous claim for refund or credit, subsections (a) and (b), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026).8Source 8HM Revenue and Customs, Penalties for inaccuracies in returns and documents: CC/FS7a, section "When we may charge you a penalty for an inaccuracy". https://www.gov.uk/government/publications/compliance-checks-penalties-for-inaccuracies-in-returns-or-documents-ccfs7a/compliance-checks-for-penalties-of-inaccuracies-in-returns-or-documents-ccfs7a-factsheet (accessed 11 October 2026).

What the brief covers

This brief summarizes a white paper that compares five countries: the United States, the United Kingdom, Ireland, Canada and Singapore. It asks three questions about the outside adviser who prepares a research and development tax claim. Is that person identified? Which penalties can reach them? Where does responsibility for an incorrect claim rest? It describes the rules and makes no recommendation for any country.

Identification

United States. Any return or refund claim prepared by a paid preparer must carry an identifying number.9Source 9Office of the Law Revision Counsel, 26 U.S.C. 6109, Identifying numbers, subsection (a)(4), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap61-subchapB-sec6109.htm (accessed 11 October 2026). The regulations require the number of the signing preparer, who has primary responsibility for the overall accuracy of the return, and the firm's employer identification number.4Source 4Treasury Department and Internal Revenue Service, 26 CFR 1.6109-2, paragraphs (a)(1) to (a)(3), and 26 CFR 301.7701-15, paragraphs (b)(1) and (b)(2)(i). https://www.ecfr.gov/current/title-26/section-1.6109-2 and https://www.ecfr.gov/current/title-26/section-301.7701-15 (accessed 11 October 2026). A person who gives advice that leads to a substantial portion of a return without signing it is a nonsigning preparer, but the return does not record that person.4Source 4Treasury Department and Internal Revenue Service, 26 CFR 1.6109-2, paragraphs (a)(1) to (a)(3), and 26 CFR 301.7701-15, paragraphs (b)(1) and (b)(2)(i). https://www.ecfr.gov/current/title-26/section-1.6109-2 and https://www.ecfr.gov/current/title-26/section-301.7701-15 (accessed 11 October 2026). The instructions for Form 6765 make no reference to a preparer.5Source 5Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), read in full. https://www.irs.gov/instructions/i6765 (accessed 11 October 2026).

United Kingdom. The claim notification and the additional information form ask for the contact details of all agents involved, including any agent who gave advice, analyzed costs or helped prepare technical assessments. A claim without the required additional information is invalid.3Source 3HM Revenue and Customs, Additional information you must submit before you claim Research and Development tax relief, section "Contact details". https://www.gov.uk/guidance/submit-detailed-information-before-you-claim-research-and-development-rd-tax-relief (accessed 11 October 2026).10Source 10HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD182000, sections "Statutory framework" and "What information is required". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird182000 (accessed 11 October 2026).

Ireland. The details required with a claim, and the pre-filing notification, contain no field for a preparer. Revenue records a company's agent of record through its agent identification and link system.11Source 11Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C, subsections (9) and (17), and Research and Development Corporation Tax Credit: Pre-filing Notification Form. https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf and https://www.revenue.ie/en/companies-and-charities/documents/rd-form-766c.pdf (accessed 11 October 2026).12Source 12Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers, sections 2 and 5. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026).

Canada. Part 9 of Form T661 asks whether a claim preparer was engaged in any way and, for each one, the name, business number, billing arrangement, billing rate and total fee. Where no preparer was used, the claimant certifies that.2Source 2Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 935 to 975. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026).

Singapore. Singapore's corporate return asks who reviewed it and for the reviewer's accreditation number, which IRAS uses "for profiling purpose"; the R&D Claim Form has no preparer field.13Source 13Inland Revenue Authority of Singapore, Frequently Asked Questions (FAQs) on Filing of Form C-S/ Form C-S (Lite), question 12. https://www.iras.gov.sg/docs/default-source/uploadedfiles/pdf/faqs---file-form-c-s.pdf?sfvrsn=7b435b8f_52 (accessed 11 October 2026).14Source 14Inland Revenue Authority of Singapore, Research and Development (R&D) Claim Form (YA 2019 and onwards), Part 4 "Declaration" and Part 5, item 5O. https://www.iras.gov.sg/docs/default-source/uploadedfiles/pdf/rnd-claim-form-(ya-2019-n-after).pdf?sfvrsn=72929970_40 (accessed 11 October 2026).

Penalties that reach preparers

Each country can penalize a preparer, but only on proof of fault.

Country Preparer penalty Fault required
United States Greater of $1,000 or 50 percent of income from the claim, rising to $5,000 or 75 percent6Source 6Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsections (a), (b) and (e), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026). Unreasonable position; willful or reckless conduct
United Kingdom Up to 70, 85 or 100 percent of potential lost revenue, minimum £7,50015Source 15HM Revenue and Customs, Compliance Handbook, CH176100, "Sanctionable conduct by tax advisers: Overview". https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch176100 (accessed 11 October 2026). Intention to bring about a loss of tax revenue
Ireland €4,00016Source 16Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, section 1055. https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026). Deliberate assistance
Canada $1,000 joint penalty on preparer information1Source 1Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026). False statement or omission, with a due diligence defense
Singapore Three or four times the payout, with fine or imprisonment17Source 17Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(3) and (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026). Wilful intent

Where responsibility rests

In each country the claimant repays an incorrect credit and carries the main penalties. In the United States a refund claim for an excessive amount carries a 20 percent penalty on the person making the claim, unless there is reasonable cause.7Source 7Office of the Law Revision Counsel, 26 U.S.C. 6676, Erroneous claim for refund or credit, subsections (a) and (b), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026). HMRC says a taxpayer who uses an adviser must do everything it reasonably can to prevent inaccuracies.8Source 8HM Revenue and Customs, Penalties for inaccuracies in returns and documents: CC/FS7a, section "When we may charge you a penalty for an inaccuracy". https://www.gov.uk/government/publications/compliance-checks-penalties-for-inaccuracies-in-returns-or-documents-ccfs7a/compliance-checks-for-penalties-of-inaccuracies-in-returns-or-documents-ccfs7a-factsheet (accessed 11 October 2026). Ireland's Revenue says responsibility for a correct return cannot be devolved to an agent.18Source 18Revenue Commissioners, Code of Practice for Revenue Compliance Interventions (effective 1 May 2022), section 4.6.2. https://www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf (accessed 11 October 2026). The CRA tells businesses they are responsible for the accuracy of information submitted on their behalf.19Source 19Canada Revenue Agency, Are you preparing to claim SR&ED tax incentives? Here's what you need to know (tax tip, 30 May 2023). https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/preparing-to-claim-sred-tax-incentives-what-you-need-to-know.html (accessed 11 October 2026).

One rule moves part of the burden. Canada makes the preparer jointly liable for the preparer information penalty.1Source 1Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).

Information about fees

Only Canada asks how the preparer was paid.2Source 2Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 935 to 975. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026). The United Kingdom has instead restricted the flow of money: for claims made on or after 1 April 2024, HMRC generally pays R&D tax credit only to the claimant company, which it said would reduce "the financial incentive for agents to overstate claims".20Source 20HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805, "R&D tax relief: conditions to be satisfied: restriction of nominations and assignments". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026).21Source 21HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), section 2.1. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026).

What the record shows

The five countries identify preparers in different ways, from naming every paid preparer and fee in Canada to an indirect record of the agent in Ireland. All of them penalize preparers only for defined fault, and all of them leave the claimant responsible for repaying an incorrect credit. Outside Canada, the official record does not show how claims were paid for, and no official source found compares outcomes across countries by how preparers were identified or paid.

References

  1. Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).    Back
  2. Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 935 to 975. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026).    Back
  3. HM Revenue and Customs, Additional information you must submit before you claim Research and Development tax relief, section "Contact details". https://www.gov.uk/guidance/submit-detailed-information-before-you-claim-research-and-development-rd-tax-relief (accessed 11 October 2026).   Back
  4. Treasury Department and Internal Revenue Service, 26 CFR 1.6109-2, paragraphs (a)(1) to (a)(3), and 26 CFR 301.7701-15, paragraphs (b)(1) and (b)(2)(i). https://www.ecfr.gov/current/title-26/section-1.6109-2 and https://www.ecfr.gov/current/title-26/section-301.7701-15 (accessed 11 October 2026).    Back
  5. Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), read in full. https://www.irs.gov/instructions/i6765 (accessed 11 October 2026).   Back
  6. Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsections (a), (b) and (e), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026).   Back
  7. Office of the Law Revision Counsel, 26 U.S.C. 6676, Erroneous claim for refund or credit, subsections (a) and (b), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026).   Back
  8. HM Revenue and Customs, Penalties for inaccuracies in returns and documents: CC/FS7a, section "When we may charge you a penalty for an inaccuracy". https://www.gov.uk/government/publications/compliance-checks-penalties-for-inaccuracies-in-returns-or-documents-ccfs7a/compliance-checks-for-penalties-of-inaccuracies-in-returns-or-documents-ccfs7a-factsheet (accessed 11 October 2026).   Back
  9. Office of the Law Revision Counsel, 26 U.S.C. 6109, Identifying numbers, subsection (a)(4), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap61-subchapB-sec6109.htm (accessed 11 October 2026).  Back
  10. HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD182000, sections "Statutory framework" and "What information is required". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird182000 (accessed 11 October 2026).  Back
  11. Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C, subsections (9) and (17), and Research and Development Corporation Tax Credit: Pre-filing Notification Form. https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf and https://www.revenue.ie/en/companies-and-charities/documents/rd-form-766c.pdf (accessed 11 October 2026).  Back
  12. Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers, sections 2 and 5. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026).  Back
  13. Inland Revenue Authority of Singapore, Frequently Asked Questions (FAQs) on Filing of Form C-S/ Form C-S (Lite), question 12. https://www.iras.gov.sg/docs/default-source/uploadedfiles/pdf/faqs---file-form-c-s.pdf?sfvrsn=7b435b8f_52 (accessed 11 October 2026).  Back
  14. Inland Revenue Authority of Singapore, Research and Development (R&D) Claim Form (YA 2019 and onwards), Part 4 "Declaration" and Part 5, item 5O. https://www.iras.gov.sg/docs/default-source/uploadedfiles/pdf/rnd-claim-form-(ya-2019-n-after).pdf?sfvrsn=72929970_40 (accessed 11 October 2026).  Back
  15. HM Revenue and Customs, Compliance Handbook, CH176100, "Sanctionable conduct by tax advisers: Overview". https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch176100 (accessed 11 October 2026).  Back
  16. Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, section 1055. https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026).  Back
  17. Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(3) and (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026).  Back
  18. Revenue Commissioners, Code of Practice for Revenue Compliance Interventions (effective 1 May 2022), section 4.6.2. https://www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf (accessed 11 October 2026).  Back
  19. Canada Revenue Agency, Are you preparing to claim SR&ED tax incentives? Here's what you need to know (tax tip, 30 May 2023). https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/preparing-to-claim-sred-tax-incentives-what-you-need-to-know.html (accessed 11 October 2026).  Back
  20. HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805, "R&D tax relief: conditions to be satisfied: restriction of nominations and assignments". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026).  Back
  21. HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), section 2.1. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026).  Back