The IRS is seeking feedback on the draft instructions until June 30, 2025.
The IRS today released draft Instructions for Form 6765, Credit for Increasing Research Activities, also known as the research credit.
According to the IRS release—IR-2024-313—the IRS is seeking feedback on the draft instructions until June 30, 2025, particularly on:
The IRS release and instructions make clear that Section G will be optional for tax years beginning before 2025. Once section G is required, column 49(f) related to business component descriptions will only be required for amended returns. The IRS will need to release further updates to the instructions to further clarify the requirements for amended returns once the section G requirements are in effect.
For tax years beginning before 2025, the only new information required by the Form is in section E and requires that taxpayers identify the total number of business components generating qualified research expenses, identity the amount of officers’ wages included as wage qualified research expenditures (if any), answer questions about base period adjustments, and identify whether the ASC 730 Directive is being used for any portion of the taxpayer’s claimed research expenses. The IRS directs taxpayers to state law to determine the definition of corporate officers.