For journalists | Research Credit Integrity Alliance

This page is for journalists and editors covering how R&D tax credit advisers are paid. The facts below are cited to primary sources. Swanson Reed's position is shown separately in the box labeled "Our position".

Who publishes this site

The Research Credit Integrity Alliance is an advocacy initiative of Swanson Reed. It is operated and funded by SR Tax Services LLC, which provides fixed-fee R&D tax advisory services under the Swanson Reed brand. Swanson Reed has a direct commercial interest in the outcome: it does not charge success fees, and a ban would remove a pricing model it competes against. Today the initiative is one firm. Our conflicts of interest page sets this out in full. Please include this when you report the position.

Key facts

The research credit. Section 41 of the Internal Revenue Code provides a federal credit for increasing research activities, measured by reference to qualified research expenses.1 Businesses figure and claim it on IRS Form 6765.2
The federal contingent fee rule. Treasury's Circular 230 says a practitioner may not charge a contingent fee for services in connection with any matter before the IRS, subject to exceptions, including for services in connection with an IRS examination of an original return.3 A contingent fee includes a fee based on a percentage of the refund reported on a return or of the taxes saved.3
The limit on that rule. In 2014, in Ridgely v. Lew, a federal district court held that the IRS lacked statutory authority to restrict contingent fees for preparing and filing ordinary refund claims, meaning refund claims filed after the original return but before the IRS begins an audit.4
Refund claim requirements. The IRS requires a research credit refund claim to identify the business components, the research activities for each, and the total qualified wage, supply and contract research expenses for the year.5
Business component reporting. The IRS states that Section G of Form 6765, which reports information by business component, is optional for tax years beginning before 2026 and required for tax years beginning after 2025, with limited exceptions.6
Penalty for excessive refund claims. The Internal Revenue Code imposes a penalty of 20 percent of the excessive amount on the person making a claim for refund or credit for an excessive amount, unless the excess is due to reasonable cause.7
Other countries ask about advisers. Canada's Form T661 asks for each claim preparer's billing arrangement and fees, with a $1,000 penalty for each claim where the information is missing, incomplete or inaccurate.8 In the United Kingdom, the Additional Information Form asks for contact details of all agents involved in an R&D claim.9

For the rules in each of the five countries we cover, see Jurisdictions. For dated milestones, see the fee regulation timeline.

The position in brief

Our position

Congress should prohibit contingent fees, commonly called success fees, in federal R&D tax credit engagements under Section 41, so that advisers are paid for the work they perform rather than for the size of the claim they produce. The concern is the incentive a percentage fee creates, not the conduct of the people who charge it. The full argument and the six proposals are on the Policy pages.

How to cite this site

Please cite the specific page you rely on, with its title, URL and the date you accessed it, and describe the site as published by Swanson Reed. Where a fact comes from an official source, we encourage you to cite that source directly; each one is linked in the page's sources list. More detail is on citing our work.

Media contact

Email hello@researchcreditintegrity.org with your outlet, your question and your deadline. You can also use the contact page. If you believe something on this site is inaccurate, our corrections page explains how we handle requests.

Sources

26 U.S.C. section 41, subsections (a) and (b)(1), United States Code, 2024 edition, GovInfo. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleA-chap1-subchapA-partIV-subpartD-sec41.htm (accessed 11 October 2026). Back
Internal Revenue Service, About Form 6765, Credit for Increasing Research Activities. https://www.irs.gov/forms-pubs/about-form-6765 (accessed 11 October 2026). Back
Treasury Department, Circular No. 230, Regulations Governing Practice before the Internal Revenue Service (Rev. 6-2014), 31 CFR section 10.27(b) and (c)(1). https://www.irs.gov/pub/irs-pdf/pcir230.pdf (accessed 11 October 2026). Back
Ridgely v. Lew, Civil Action No. 1:12-cv-00565 (CRC) (D.D.C. July 16, 2014), Memorandum Opinion (Document 48), page 1. https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_12-cv-00565/pdf/USCOURTS-dcd-1_12-cv-00565-1.pdf (accessed 11 October 2026). Back
Internal Revenue Service, Research credit claims (Section 41) on amended returns frequently asked questions. https://www.irs.gov/businesses/corporations/research-credit-claims-section-41-on-amended-returns-frequently-asked-questions (accessed 11 October 2026). Back
Internal Revenue Service, Instructions for Form 6765 (12/2025), Section G. https://www.irs.gov/instructions/i6765 (accessed 11 October 2026). Back
26 U.S.C. section 6676(a), United States Code, 2024 edition, GovInfo. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026). Back
Canada Revenue Agency, SR&ED T661 Claim Form, 2013 Revision, Claim preparer information, Canada.ca. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/whats-new-program/t661-claim-form-2013-revision-claim-preparer-information.html (accessed 11 October 2026). Back
HM Revenue and Customs, Additional information you must submit before you claim Research and Development tax relief, GOV.UK. https://www.gov.uk/guidance/submit-detailed-information-before-you-claim-research-and-development-rd-tax-relief (accessed 11 October 2026). Back