The IRS recently proposed changes to the R&D tax credit form to better administer research credits going forward as of the 2023 tax year. These changes to Form 6765 Credit for Increasing Research Activities are still in the planning stages and IRS is seeking input from taxpayers but the key changes to claiming the R&D tax credit at this point are as follows:

  • Identify the business component(s) as part of the research credit being claimed
  • Whether taxpayer is a member of a controlled group
  • How much in wage QREs are Compensation of Officers
  • Any acquisitions/dispositions in the year
  • Any new category of activities being claimed for the R&D tax credit
  • Whether taxpayer is following Topic 730 directive as part of its research credit

There likely will be additional commentary period and earliest release date is slated for mid-2023 which would mean this would apply to tax returns for the 2023 year filed during 2024.