Chris Peters | R&D Tax Advisors

7 R&D Tax Credit Red Flags to Check Before You File (Plus 1 Bonus Most Miss) The biggest risk with the R&D tax credit is not claiming it, but being able to support it, and provides a one-page checklist of seven red flags plus a bonus issue. I describe a case where a company received a clean-looking R&D form but never filed it properly for the payroll offset, leaving about $200,000 uncl...

The 3-Folder R&D Tax Credit Documentation System (Built for IRS Audits + Form 6765 Section G) The episode explains why many R&D tax credit studies fail audit scrutiny because they produce only a form number without substantiating documentation or coordination with the company CPA, using a pre-revenue tech company example where a $50,000 “study” delivered $0 benefit and missed a true ~$150,...

R&D Tax Credit for Small Engineering Teams: The 4-Part Test, 3 Layers, and Top Disqualifiers The episode explains how founders with 5–10 person engineering teams often miss six-figure R&D tax credits by using their own definition of R&D instead of the IRS’s four-part test: permitted purpose, technological in nature, technical uncertainty, and process of experimentation. It recommends a...

Pre-Revenue Founders: Don’t Wait—Claim the R&D Tax Credit as a Payroll Tax Refund (5-5-5 Rule) The episode explains why pre-revenue startups with small US engineering teams should consider claiming the R&D tax credit now instead of waiting for profitability. It describes a special election that allows qualifying startups to apply the credit against payroll (FICA) taxes for the first five y...

How to Claim the R&D Tax Credit for Your Startup in 2026 (Step-by-Step + Avoid Costly Mistakes) The episode explains how an early-stage engineering startup can claim the R&D tax credit in 2026 and set up a repeatable process to capture it every year. It emphasizes starting by understanding the business and mapping day-to-day work to the IRS definition, then listing projects in plain Englis...

New IRS Form 6765 (Section G): How to Build an Audit-Ready R&D Tax Credit Claim This episode explains the IRS’s upcoming changes to Form 6765 for claiming the R&D tax credit, focusing on the new Section G and what examiners already request in audits. The episode outlines how the IRS now expects a clear nexus tying expenses to specific projects and qualifying activities, including reporting...

R&D Tax Credit for Startups: How Pre-Revenue Companies Can Offset Payroll Taxes (Up to $500K) The episode explains that startups don’t need to be profitable to benefit from the R&D tax credit because eligible pre-revenue, pre-taxable companies can apply the credit to offset payroll taxes, now up to $500,000 per year. It outlines why the credit exists and how the mid-2010s change allowed st...

R&D Tax Credit for Startups: IRS 4-Part Test, Internal-Use Software Rules, and Audit-Ready Documentation This episode explains the IRS framework for evaluating R&D tax credit eligibility in clear startup terms, including how to apply the four-part test to specific “business components” rather than an entire product, using an example to show how to isolate the true areas of technical uncert...

R&D Payroll Tax Credit for Pre-Revenue Startups: How to Claim Up to $500K (Form 6765 + 8974) The script explains how pre-revenue startups can use the federal R&D tax credit to offset payroll taxes (including the 7.65% payroll tax) without giving up equity, with examples of companies capturing roughly $50K–$197K and one engineering firm calculating about $150K from $1.5M in qualified wages....