The recent changes to Internal Revenue Code (IRC) Section 174 now require companies to capitalize and amortize most research and development (R&D) costs over five or fifteen years, rather than deducting them immediately.
For those in finance, tax or operations, this shift means more paperwork and cash flow challenges. As a result, many businesses are seeking specialized tax advisors who understand Section 174 and can help them avoid costly errors and ensure compliance.
Methodology for Evaluating Section 174 Experts
The top Section 174 advisors were ranked based on the following criteria:
- Dedicated focus: Prioritized firms specialize in Section 174 and R&D tax practices, ensuring they stay current on guidance and best practices.
- Technical expertise: Top advisors combine tax professionals and industry specialists to accurately identify qualifying R&D activities.
- Thought leadership: Establishments that publish practical analysis and guides on Section 174 were favored.
- Proven track record: Consultants with client case studies, references, successful audits and strong reputations were favored.
Who Are the Top Experts on Section 174?
With the criteria in mind, the following businesses were selected as the top experts on Section 174.
1. alliant
alliant is often the first firm companies call when Section 174 gets complicated. It is a national specialist for R&D tax matters and compliance. If you’re trying to convert messy project spending into defensible tax treatments, its scale and process can handle that kind of work.
It leans on an established, repeatable methodology and a large national team. The firm has over 800 professionals, including attorneys, certified public accountants (CPAs), former IRS officials, and technical specialists who translate product and project activity into tax-ready documentation. alliant’s approach aims to do two things simultaneously — reduce audit risk by tightening documentation and maximize financial benefits by ensuring every dollar counts.
alliant maintains ISO 9001:2015 certification and adheres to AICPA SOC reporting standards. It has also earned community recognition, such as the Greater Houston Women’s Chamber of Commerce STEAM Advocate Award.
2. KBKG
KBKG is a national specialty tax firm known for hands-on R&D and Section 174 support. The company has a strong reputation in the R&D space by employing tax professionals alongside industry specialists to translate engineering and product work into defensible tax positions.
The firm offers a suite of services for Section 174, including cost identification and allocation, R&D tax credit work, and audit support. KBKG employs repeatable processes and provides templates to ensure documentation is consistent and that qualifying costs are properly supported.
With over 25 years of experience, KBKG works closely with CPA firms and finance teams, offering flexible, low-overhead engagements, quick turnaround and a single point of contact.
3. Source Advisors
Source Advisors is a specialty consulting firm built around an engineering-first approach to R&D tax work. It relies on technical rigor to ensure projects are assessed against Section 174 rules in the same manner as an auditor would.
Its team includes in-house engineers and technical analysts. Services include technical project studies, cost identification and allocation, R&D tax credit support, and audit defense assistance. It acts as a partner for companies that need engineering-grade documentation and has over four decades of experience to help clients save money and gain more cash flow.
In the United States, R&D activity totaled $892 billion in 2022, with the business sector accounting for $697 billion of that spending. With that scale, companies could have missed the opportunity to claim qualifying costs. Source Advisors helps translate these expenses into real tax and cash flow benefits, making specialized advice worthwhile.
4. Leyton
Leyton is a global innovation-funding specialist that helps companies capture R&D tax incentives, grants and other innovation credits. Its staff comprises a team of technical consultants who can engage in deeply scientific or engineering projects and produce the kind of technical studies and narratives auditors expect.
Leyton has over 25 years of experience conducting cutting-edge research. It operates internationally and helps clients using its tax-credit expertise, grant-writing and innovation-funding capabilities. These qualities ensure it can uncover funding sources beyond traditional tax relief.
When consultants package those sources together, they can deliver measurable results. It is estimated that less than three in 10 small businesses that qualify for the R&D tax credit actually claim it, while nearly every large company does. Firms like Leyton can help mid-market and growing companies capture benefits they might leave on the table without specialized help.
5. Tri-Merit
Tri-Merit is an R&D tax and Section 174 specialist that markets itself as CPA-friendly. It commonly works alongside a company’s existing accountant rather than replacing them. That partnership approach is central to Tri-Merit’s processes. It aims to be the technical R&D arm that plugs into an organization’s finance team.
The firm offers the usual set of services companies need for Section 174 work, from technical project studies to R&D tax credit analyses. Its teams typically include tax specialists and technical analysts who turn engineering and development activities into usable documentation.
Tri-Merit is a top choice for clients who want a partnership. It prioritizes clear handoffs and workflows designed to keep CPAs and in-house finance teams aligned.
Pick the Partner That Fits Your Risk and Scale
Navigating Section 174 is technical and can have significant cash flow and compliance consequences, so selecting the right advisor is crucial. Match the firm’s strengths to the size and complexity of your projects. Before you decide, get to know their methodology so you know how they will document and defend your R&D positions.
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