Watch Out For Scammers Promising R&D Tax Credits

Unscrupulous tax groups are using AI tools to promise farmers and business owners quick returns in the form of the Research and Development tax credit, when they may not qualify. Former North Dakota senator and tax commissioner Heidi Heitkamp now serves as Director of Agriculture at Alliant, and she is warning farmers and ranchers to keep their guard up.

“If somebody reaches out and says you should apply for the tax credit, the first thing you should do is call your accountant, call your call your folks, ask them if this is legitimate," Heitkamp said. "And then say, you know, you heard somebody who used to do consumer protection for a living, who said, be very, very cautious when they promise, you know, it's the thing we used to say when I was attorney general and I ran consumer protection in North Dakota. If it sounds too good to be true, it probably isn't.”

Age Is Not An Issue In These Scams

Heitkamp said while the R&D credit is a valuable financial incentive for any Ag business owner, she warns that trusting emerging AI firms could result in improper filing, leaving the consumer on the hook for any resulting penalties. She said the scammers can go after anyone regardless of age.

“When somebody looks like they're throwing you a lifeline, it doesn't matter how old you are. You're like, well, if this can work to give me a couple more years until, you know, maybe milk prices go up, or until, you know, commodity prices straighten out, you know, this could be a lifeline," she stressed. "And my argument is, it could be, but it won't be if you go with bad providers.”

Heitkamp recommends contacting your trusted tax advisor about the R&D tax credit and consult them before hiring any unknown tax group.