IRS Delays New R&D Form 6765 Requirements Until 2026

If your company claims an R&D tax credit, you may have noticed that there was a new Form 6765. The new Form 6765 was implemented for tax years beginning in 2024 and requires more information to be reported than in the previous version of the form.

The IRS just announced that they will extend the comment period for the form instructions as well as delay the requirement to complete Schedule G for one additional year (now mandatory in 2026).

What Does the New Form 6765 Mean? 

There are three key takeaways from the press release:

1. The IRS is listening to practitioner concerns that the instructions are unclear, and further guidance is needed for certain sections of the form.
2. Taxpayers have an additional year to ensure sure that they have the information to properly complete Schedule G (if required).^[1] This is important because Schedule G requires a significant level of detail and some taxpayers may not be able to provide such information without changing their current processes. These concerns were discussed with the release of last year’s updated draft version of Form 6765.
3. The IRS also announced in the same press release that the Service will extend the research credit claim transition period for amended returns. This gives taxpayers 45 days to perfect a research claim for refunds filed through Jan. 10, 2027.

What Should Taxpayers Be Thinking About?

Overall, the announcement is great news as it shows that the IRS is listening to taxpayer concerns and is also giving companies one more year to make sure that the required information can be provided.

However, it’s important to remember that, just because the information isn’t reported, does not mean you shouldn’t have the information readily available. The IRS has signaled loud and clear what documentation they expect to support the credit (some states have also followed suit). You may not have to provide the information on Form 6765 yet, but, if audited, it is highly likely that this is the information that the IRS or the state will request.

Please contact your KSM advisor to discuss how these changes may affect your specific situation or complete the form below.

[1] Taxpayers who have more than $1.5 million of QRE or $50 million of gross receipts and are not electing the payroll tax credit are also required to report additional information. Reporting the information is optional for taxpayers who make the payroll tax credit election or are under both thresholds referenced above.