How to Know If You’re Over- or Under-Claiming Your R&D Tax Credit—and Finally Feel Confident in Your Position
Author: Diane Stogiannes, B.Sc., President, DST Advisory Group
If you’re responsible for your company’s R&D tax credit, you’ve likely asked yourself a version of this question:
Are we getting this right?
Not just “are we maximizing the credit,” but—more importantly—
Are we claiming what we should… without taking on unnecessary risk?
That tension is real. On one side, no one wants to leave value on the table. On the other, no one wants to sign off on something that won’t hold up under scrutiny. The result? Many companies sit in a quiet middle ground—hoping they’ve landed in the right place, but never fully certain.
What I’ve seen, time and time again, is that the bigger issue isn’t over-claiming. It’s under-claiming.
Not because teams aren’t capable. But because the process often misses the full picture.
I recently worked with a client who engaged us to prepare their current year R&D claim. As part of our process, we reviewed their prior year work—not just at a high level, but with intention. We looked at it through a base period lens and asked a simple question: Does this reflect how the business actually operates?
The answer was no.
Entire departments had been left out. Not intentionally—just overlooked. Within those groups were engineers solving real technical problems, navigating uncertainty, and iterating toward solutions. In other words, exactly the type of work the credit is designed to support.
This is where the shift happens.
Our team—made up of Tax Engineers, CPAs, and former IRS professionals—went deeper. We didn’t just take what was presented at face value. We mapped business components properly. We sat with technical teams and translated their work into a defensible framework. We established clear nexus between activities and costs. And just as importantly, we applied consistency across years so the story held together.
The result was meaningful.
We increased the current year credit. We identified gaps in prior years. And we uncovered an opportunity to amend for a very material benefit.
But the real value wasn’t just the dollars.
It was confidence.
Because everything was supported through a detailed, substantiated technical report. The kind that doesn’t just check a box—but actually tells the story of the work, clearly and credibly.
That’s the shift I want for every tax leader.
From uncertainty… to clarity.
From second-guessing… to confidence.
From hoping it’s right… to knowing it will stand up.
When your R&D claim is built on the right foundation—aligned across tax and engineering, grounded in technical reality, and supported with proper documentation, you don’t have to choose between maximizing value and managing risk. You can do both.
If you’re wondering whether your current claim reflects everything it should, or if there may be exposure areas you haven’t considered, DST is here to help.
Reach out to us for a free scope-out or review of your company’s R&D tax credit claim. It’s a practical, no-pressure way to understand where you stand—and where the opportunity might be.