Hidden revenue for your clients

Overlooked tax credits and cost-recovery items worth raising with business-owner clients. Every point below links to an IRS or CBP source. Use this as a list of conversation starters, not as advice.

Not tax, legal or financial advice. Eligibility depends on facts and circumstances, and rules change. Confirm with the primary source and a qualified tax professional before acting.

1. The federal R&D credit (IRC §41)

Claimed on Form 6765. Qualified research has to meet a four-part test: a permitted purpose, a technological basis, elimination of uncertainty, and a process of experimentation.
It isn't just for labs. Manufacturers, food and beverage producers, software developers, engineering and construction firms, and others may have qualifying activities.
Eligible small businesses may be able to apply part of the credit against payroll tax instead of income tax. See the Form 6765 instructions for the qualified small business election.

2. Domestic R&E is deductible again (new §174A)

The One Big Beautiful Bill Act added §174A. Domestic research or experimental expenditures in tax years beginning after Dec 31, 2024 can be deducted currently. Foreign research is still amortized over 15 years.
Domestic amounts capitalized in 2022–2024 and not yet amortized can generally be deducted in 2025 or ratably over 2025–2026.
The retroactive election for small businesses with gross receipts of $31M or less, covering 2022–2024, had a July 6, 2026 deadline, which has now passed.
Sources: Rev. Proc. 2025-28, Rev. Proc. 2026-32, Taxpayer Advocate Service.

3. FICA tip credit (IRC §45B), now including beauty services

Claimed on Form 8846. The credit generally equals the employer share of Social Security and Medicare tax paid on tips above the amount needed to bring an employee's pay to $7.25 an hour.
Restaurants and bars have long qualified. For tax years beginning after 2024, it also covers barbering and hair care, nail care, esthetics, and body and spa treatments.
Salon and spa clients with tipped staff should ask whether they are now eligible.

4. 100% bonus depreciation and cost segregation

100% additional first-year depreciation under §168(k) is now permanent for qualified property acquired after January 19, 2025 (IRS Notice 2026-11).
A cost segregation study can identify the parts of a building that qualify as 5-, 7- or 15-year property. The IRS Cost Segregation Audit Techniques Guide (Pub. 5653) explains what examiners look for in a quality study.

5. IEEPA tariff refunds for importers

The Supreme Court struck down the IEEPA tariffs on February 20, 2026. CBP then opened refund processing through its CAPE functionality in ACE. Refunds generally arrive by ACH, with interest, about 60–90 days after acceptance.
The company has to be the importer of record, and eligibility depends on entry and liquidation status. A later phase that began Oct 6, 2026 was limited to certain finally liquidated entries, and appeals were still pending.
Source: CBP: IEEPA duty refunds. Work with a licensed customs broker or trade attorney.

6. Technology and telecom overpayments

Many businesses have never had their telecom, internet, cloud and IT contracts reviewed, and costs tend to creep up over time.
According to Sandler Partners, a technology advisory firm that DBR works with, reviews can uncover overpayments of 10–40% on these services. Results vary by business.

Programs to stop pitching

Employee Retention Credit: closed to new claims, and certain late 2021 claims are barred (IRS ERC page). Treat aggressive ERC marketing as a red flag.
Work Opportunity Tax Credit: not extended past Dec 31, 2025 as of this update (IRS WOTC page).

Where Dreams Business Resources fits Disclosure: we are a DBR referral partner

Dreams Business Resources (DBR) offers a business review called the DREAMS Score. According to DBR's own materials, it looks at six areas: Debt, Retirement, Expenses, Assets, Money and Security. That includes tax credits, payroll and benefits costs, energy, technology and risk. DBR's materials also describe access to providers for:

R&D tax credit studies
IEEPA tariff refund support for importers and customs brokers, through a partner recovery firm
Group health and benefits reviews
Business funding, technology and telecom, commercial energy, and life insurance and annuity solutions

DBR's own report says its figures are "estimates based on limited information" and "not guarantees", and that findings should be confirmed by qualified specialists. We agree. Treat any review as a starting point for you and the client to verify. We may receive referral compensation if a business you introduce works with DBR or its providers. See disclosures.

Become a referral partner

FAQ

Can small businesses still deduct research and experimental costs right away?

Yes. Under new IRC §174A, added by the One Big Beautiful Bill Act, domestic research or experimental expenditures paid or incurred in tax years beginning after December 31, 2024 can be deducted currently. Foreign research is still amortized over 15 years. The special retroactive election for eligible small businesses (gross receipts of $31 million or less) for 2022–2024 had a July 6, 2026 deadline. Unamortized domestic amounts from 2022–2024 can generally be deducted in 2025 or spread over 2025–2026.

Who qualifies for the FICA tip credit?

Food and beverage employers have long been able to claim the IRC §45B credit on Form 8846. For tax years beginning after 2024, it also covers certain beauty-service businesses: barbering and hair care, nail care, esthetics, and body and spa treatments. The credit generally equals the employer share of Social Security and Medicare tax on tips above the amount needed to bring an employee to $7.25 an hour.

Can importers still get IEEPA tariff refunds?

After the Supreme Court struck down the IEEPA tariffs on February 20, 2026, CBP opened refund processing through its CAPE functionality in ACE. Eligibility, phases and deadlines depend on the entry status, and litigation was still pending in October 2026, so check CBP’s IEEPA duty refunds page and a licensed customs broker or trade attorney.

Is the Employee Retention Credit still available?

No. The ERC is closed to new claims, and the One Big Beautiful Bill Act bars certain late-filed claims for the third and fourth quarters of 2021. Be wary of anyone marketing new ERC claims.

Is the Work Opportunity Tax Credit still available?

As of October 2026, the WOTC was not extended past December 31, 2025, so it does not apply to employees who start work after that date unless Congress renews it. Check the IRS WOTC page for updates.

AdvisorAIStack provides general information only. It is not tax, legal, accounting, investment or financial advice. Confirm details with the vendor and a qualified professional before acting. Last reviewed 2026-10-16.