INCENTIFY EXPOSED
Despite warnings from the IRS and tax professionals, AI-driven tech firms like Incentify are posing as legitimate tax experts. Their pitch? An AI-powered platform built on a database of federal, state and local incentives, including complex research and development (R&D) tax credits, to provide clients with insights that make claiming tax benefits easier. The reality? Accurately claiming complex R&D credits requires expert review to ensure compliance and maximize savings.
Incentify’s CEO has no tax-related certifications or direct experience in tax accounting. This absence of foundational experience raises a serious question: how can they help American companies accurately manage and file these complex tax credits without core knowledge?
THROWING THE RED FLAG ON INCENTIFY
INCENTIFY CLAIM
“AI also powers automatic recommendations tailored to company size, industry and geography—replacing outdated methods with intelligent automation.”
REALITY
AI doesn’t replace the expertise, judgement or legal responsibilities of CPAs. There is no substitute for a licensed professional who understands your business.
INCENTIFY CLAIM
“As AI models continue to improve, we’ll see even more
personalization, better outcomes and less waste.”
REALITY
The personalization by AI is only as good as the data it is trained on. Can businesses afford to trust “better outcomes” to a black box when real money and IRS scrutiny are on the line?
INCENTIFY CLAIM
“A single accountant or internal tax team can now scan hundreds of incentive programs in seconds, not weeks.”
REALITY
Speed does not equal accuracy, and any potential matches of business activity for credit and incentives programs must be reviewed carefully to avoid any audit missteps. Hundreds of automated claims still require validation.
INCENTIFY CLAIM
“Real-time, holistic data at your fingertips instead of ‘fingers crossed.’ The new way is the only way.”
REALITY
Having real-time data is powerful, but tax credits and incentives require careful interpretation, documentation and judgement. Businesses can’t ditch uncertainty by accessing more data, the human element remains critical to avoid costly mistakes. Trusting AI to accomplish what a human professional does is actual ‘fingers crossed’ thinking that businesses can’t afford to make.
INCENTIFY CLAIM
“See tax credit & incentive complexity turn to clarity with AI.”
REALITY
AI can organize and highlight opportunities, but it can’t analyze the complexities of ever-changing tax laws nor replace the legal expertise needed to interpret them correctly.
INCENTIFY CLAIM
“We’re able to democratize credits and incentives for everyone, not just the few, but to the many.”
REALITY
While Incentify aims to make tax credits more accessible, businesses still face challenges in navigating complex eligibility criteria and ensuring compliance, which requires expert intervention beyond automation.
HOW CAN INCENTIFY’S MODEL PREVENT HALLUCINATIONS
Incentify compiled and trained their AI on a “massive data warehouse” containing federal, state and local grant, credit and incentives. No matter how smart the AI is, you still need people to make sure the data adds up. Even the largest AI platforms get it wrong. Newer AI systems have hallucination rates as high as 79 percent, meaning they generate errors or make data up. With Incentify’s model, companies must exercise caution and be aware that AI can try to match your company’s activities to a tax credit, even when it is not really eligible, exposing your company to IRS audits and fines or even criminal penalties.