IRS Releases New Form 6765

The IRS has published a draft version of the Form 6765 Credit for Increasing Research Activities, also known as the R&D Tax Credit. The draft Form 6765 requests much of the same information that the Service began requiring for amended returns in 2022, detailed in our blog New Filing Requirements for R&D Credit.

Before the IRS’s proposed changes, the only information necessary to claim the R&D Tax Credit on an originally filed return was the categorized expenses of qualified wages, supplies, rental or lease cost of computers, and contractor costs; and the base period calculation.

Starting with the tax year 2024 filing, the IRS is requesting significant additional information related to expenses and activities broken out by business component. The additional information will be mandatory for most taxpayers beginning in tax year 2025.

This announced shift towards requiring additional information for all filings presents an opportunity for taxpayers to assess their current claims and internal processes to ensure they are in a position to meet the upcoming filing requirements.

Working with a seasoned professional can help ease the burden of these additional requirements. Contact CTI today and let our team of R&D experts work to help you gather, produce, and maintain a substantiation package necessary to support an R&D Tax Credit claim.