The rules for claiming R&D tax credits have changed dramatically. Recent federal reforms have overhauled what qualifies, while state-level programs have added new layers of complexity. For American businesses, the risks—and the potential rewards—have never been greater.

Yet, many companies are turning to DIY platforms and AI-powered tools, tempted by promises of automation and low fees. The result? Millions in missed opportunities, weak audit protection, and compliance risks that could end up costing far more than any upfront savings.

Here’s why today’s environment requires more than just software: you need real expertise on your side.

The Federal Landscape Has Shifted Dramatically.

The Tax Cuts and Jobs Act fundamentally changed how businesses can benefit from R&D tax credits, especially for startups and high-growth companies. These aren’t simple rule tweaks that an algorithm can handle. They require strategic thinking about:

  • Multi-year tax planning to maximize your credit value as amortization rules evolve
  • How you categorize expenses—a decision that can have a major impact on your bottom line
  • Payroll tax offset strategies for eligible small businesses
  • Alternative Minimum Tax considerations that affect how you can use your credits

An automated platform can’t make these judgment calls. You need experienced tax credit specialists who know not just the law, but how to get the most out of it for your business.

State Programs Bring Both Opportunity and Complexity

While tech-only platforms usually focus on federal credits, they often miss out on huge value by ignoring state-level opportunities. Nearly every state now offers its own R&D incentive programs, each with unique:

  • Qualification rules that don’t always match federal standards
  • State agencies with their own documentation requirements
  • Credit stacking opportunities that can double or triple your total benefit
  • Carryforward and transfer options

Think about California’s multi-tiered credit system, New York’s refundable credit, or Massachusetts’ expanding innovation incentives. An expert advisor doesn’t just know these programs exist—they know how to layer them with federal credits to maximize your total return.

The bottom line: Companies that work with expert-backed solutions consistently uncover far more qualifying activities than those relying on automation alone. Much of this extra value comes from state credit strategies that algorithms simply can’t match.

Qualification Rules Are Different Now

The IRS has ramped up its scrutiny of R&D tax credit claims. Auditors are now digging deeper into:

  • The four-part test for qualified research activities
  • Documentation standards that prove technological uncertainty
  • Proof of expenses tied to qualifying R&D work
  • How you identify business components and systematic experimentation

This isn’t just about checking boxes on a software dashboard. It’s about understanding the nuanced language of innovation that IRS reviewers use, building a story around your technological goals, and creating documentation that stands up to tough scrutiny.

Tech-only platforms collect data. They don’t understand context. They can’t spot when an activity that looks routine actually involves significant technological uncertainty in your industry. They can’t explain why your development process counts as systematic experimentation instead of just trial and error.

These details are what separate successful claims from those that fall apart under audit.

Facing the Reality of Audit Defense

Here’s what happens if the IRS questions your claim and you used a DIY or fully automated platform:

You’re on your own.

Most tech-focused providers give you basic paperwork but little to no audit support. When the IRS or state agencies ask tough questions about your methodology, expense allocation, or technical write-ups, you’re left scrambling to defend decisions made by software you can’t fully explain.

Compare that to working with expert-backed solutions that include:

  • Comprehensive audit defense from specialists who have successfully defended hundreds of claims
  • Proactive documentation strategies built specifically for audit situations
  • Expert testimony to back up complex technical claims when needed

Why “AI-Powered” Isn’t Enough

Artificial intelligence is great at spotting patterns and processing data. But it struggles with:

Contextual understanding: AI can’t tell the difference between routine engineering and qualifying research in your specific field. It doesn’t know that what’s uncertain for a fintech startup might be standard for an aerospace company.

Subjective Judgment: R&D qualification often depends on subjective calls about technological uncertainty, innovation, and systematic methods. These require human expertise, industry insight, and an understanding of how government reviewers think.

Strategic optimization: Algorithms optimize for processing speed and completion rates. Expert advisors optimize for maximum value, integrating R&D credit planning with your broader tax strategy, multi-year planning, and business goals.

Navigating Relationships: Success with R&D credits now depends on understanding how reviewers think, communicating clearly with government agencies, and managing subjective review processes. No software can replace these human skills.

The Real Price of “Cheap” Solutions

A low-cost automated platform might look appealing, but consider what you’re really giving up:

  • Missed qualifying activities that could boost your claim by 25–40%
  • Weak documentation that falls apart during audits, potentially costing you your entire claim
  • Overlooked state opportunities that leave hundreds of thousands in credits unclaimed
  • Strategic mistakes in timing, allocation, or integrating credits with your overall tax strategy

When you add up these costs, that “cheap” solution can end up being extremely expensive.

The Boast Advantage: Technology-Driven, Expert-Optimized

The answer isn’t choosing between technology and expertise. You need both.

Boast combines advanced automation with seasoned R&D tax credit specialists who have decades of experience working directly with federal and state agencies. Our platform handles data collection and processing efficiently, while our experts ensure:

  • Every qualifying activity is found and fully documented
  • Your claims are optimized across both federal and state programs
  • Your documentation is audit-ready and meets the highest standards
  • Strategic decisions maximize both immediate and long-term value

This hybrid approach delivers:

  • Comprehensive coverage in all 50 states—not just federal programs
  • Audit-proof documentation built into our SOC II-compliant platform
  • Seamless integration for document capture within your existing R&D workflows
  • Ongoing value with year-round optimization and policy monitoring
  • Expert guidance for strategic planning and dealing with government agencies

Choosing the Right Solution for Your Business

As R&D tax credit rules get more complex and government scrutiny increases, the gap between DIY and expert-backed approaches will only get wider.

Ask yourself:

  • Can your current provider handle multi-state credit optimization strategies?
  • Does it account for recent federal changes and their long-term effects?
  • Will they stand by your claim if the IRS challenges your methodology?
  • Are they uncovering all your qualifying activities—or just the obvious ones?
  • Do you actually understand how your claim was analyzed and how the process works?

If you’re unsure about any of these answers, it’s time to ask whether you’re truly maximizing your R&D credit opportunity—or just filing a claim.

What You Should Do Next

Don’t leave money on the table with tech-only solutions that promise easy automation but deliver incomplete results. Today’s R&D tax credit landscape demands a blend of advanced technology and deep expertise—something only specialized platforms can offer.

Ready to see what you’re missing? Book a free consultation with our R&D tax credit experts to compare your current approach with what’s possible through true expert optimization.

Boast has secured over $625M in R&D credits for clients across all industries and company stages. Our platform combines advanced automation with unmatched expertise to deliver maximum returns and rock-solid audit protection.