R&D tax credit referral programs vs data licensing introductions for CPA firms

The verdict: which one fits which client

Choose an R&D credit referral when a client does qualifying development, engineering or process work and the provider's fee arrangement passes your firm's contingent-fee and referral-fee checks. Choose a SourceX introduction when the client is a US company with 50+ full-time employees at peak (contractors excluded) that keeps years of operational records it owns, and whose owner or CFO is open to a one-time license payment.

Many engineering, software and manufacturing clients could be candidates for both. That is the reason to compare the economics and the ethics side by side instead of signing with whichever partner manager called last.

How the two programs compare

Where contingent-fee rules come in

The AICPA's Contingent Fees Rule (ET 1.510) is the first check for most R&D credit arrangements. A contingent fee is one whose amount depends on attaining a specific result, and members may not perform services for a contingent fee for a client whose audit, review, certain compilations or examination of prospective financial information the firm performs (NYSSCPA explainer). The rule also addresses fees for preparing original or amended returns and refund claims, which matters because a research credit can be claimed on either; read the exact text in the AICPA Code of Professional Conduct.

State rules can go further. The New Jersey Society of CPAs notes that a licensee there may not receive a contingent fee for preparing an original or amended tax return (NJCPA). Firms that audit SEC registrants carry a separate layer, because SEC auditor-independence rules on contingent fees are their own regime apart from the AICPA Code (SEC staff correspondence). If you practice before the IRS, review Treasury Department Circular 230 with your firm's ethics counsel as part of the same check.

Referral fees themselves fall under the Commissions and Referral Fees Rule (ET 1.520), where the attest-client line decides a great deal; attest vs non-attest referral fee rules walks through it. Whether a success-based reward counts as a contingent fee is covered in is a success-based referral reward a contingent fee.

This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.

The five-question partner program test

Run any referral program, SourceX included, through the same five questions before you sign.

1. Who pays me, and out of what? A share of the provider's fee, a separate marketing budget, or an amount added to the client's bill.
2. What exact event triggers payment? Signature, filing, the provider's invoice or the provider's collection.
3. Does my client pay more because I am paid? Get the answer in writing.
4. Do our other services for this client change the answer? Audit, review, compilation, examination of prospective financial information, or preparing the return that carries the credit.
5. Can I disclose the arrangement in one plain sentence? If not, the terms are too complicated for a client conversation.

For SourceX the answers are short. The reward comes from SourceX's collected fee, it is paid only after the buyer pays, and it is never deducted from the company's proceeds.

When the R&D credit program is the better fit

• The client does qualifying development work but does not reach 50+ full-time employees at peak.
• The conversation is already about tax: year-end planning, extension season or a new product launch.
• The client wants a benefit that can recur with ongoing research activity.
• Your firm is not the attest provider, and the provider's terms pass all five questions.

When the SourceX introduction is the better fit

• The client is a mature operating company with records across email, Teams or Slack, CRM, ERP, ticketing and engineering tools, ideally going back five to ten years or more.
• Systems are about to be retired, or the owner is planning a sale or wind-down, and records could be lost.
• The owner wants a one-time payment, keeps ownership of the data and approves every term before signing.
• Your firm prefers not to share in any fee tied to a tax outcome.

Using both without crossing wires

A client that claims the research credit may already hold material buyers value: project records, technical specifications, test results and time tracking. The R&D tax credit documentation guide explains why that work can be a head start on a records inventory. Keep the two tracks separate. Get the client's permission before naming it to either provider, never pass client files to anyone, and let the client complete its own data inventory with SourceX.

Illustrative: an advisory partner at a regional firm works with a 160-person engineering services client the firm does not audit. During a systems review the CFO mentions that a project-management platform holding a decade of project records will be retired next year. The partner asks permission, sends the SourceX referral link with a one-line disclosure of the reward, and the firm's ethics partner documents the review in the client file.

How SourceX fits a CPA firm's referral policy

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company, and the reward becomes payable only after the buyer pays and SourceX receives its fee. A meeting, an application or a signed agreement alone does not trigger payment, and no reward is guaranteed. Licensed professionals should check their own rules on referral fees and disclosure before registering; the rewards page and program terms set out the details.

Next step

Pick your strongest non-attest client, run it through the five questions, and see how the formula works in the referral earnings calculator. Then register as a partner. The page on referral opportunities for accountants covers other client signals worth watching.