The IRS has released a revised draft of Form 6765, Credit for Increasing Research Activities for the R&D tax credit, incorporating feedback from external stakeholders to reduce taxpayer burden and improve tax administration of the R&D credit. Key changes include making the reporting of Section G (formerly Section F) optional for Qualified Small Business (QSB) taxpayers and those with total qualified research expenditures (QREs) of $1.5 million or less and gross receipts of $50 million or less. The IRS has also reduced the number of business components that need to be reported on the R&D form, requiring only 80% of total QREs in descending order, capped at 50 components. Additionally, the amount of information required for each component has been minimized, eliminating several previously required details. The revised Section G will be optional for all filers in tax year 2024 filing for the R&D tax credit and mandatory starting in tax year 2025. After hearing comments from taxpayers, these changes are intended to ease the transition and reduce compliance complexities for taxpayers.
IRS Announces New R&D Tax Credit Form 6765
