WASHINGTON — The Internal Revenue Service (IRS) announced that it is extending the comment period and certain reporting deadlines related to Form 6765, Credit for Increasing Research Activities.
This form, commonly known as the research credit, supports innovation by rewarding businesses that invest in qualified research and development. The agency’s extension aims to promote fairness, transparency, and efficiency in tax administration.
Background on Form 6765
Form 6765 allows eligible businesses to claim a tax credit for qualified research activities and related expenses. The research credit helps companies offset some of the costs of innovation, such as employee wages, supplies, and contract research.
To improve clarity and ease of compliance, the IRS published draft versions of Form 6765 and its instructions last year, inviting public feedback from taxpayers, advisors, and industry stakeholders.
Why the IRS Is Extending the Feedback Period
After reviewing initial public comments, the IRS determined that stakeholders needed additional time to analyze the draft instructions and provide meaningful feedback. To address this, the agency has extended the comment deadline through March 31, 2026.
This extension is designed to reduce taxpayer burden and ensure that the final instructions reflect a balanced and practical approach to reporting research activities.
How to Submit Feedback
The IRS encourages interested parties to share their insights and recommendations directly with the agency. Comments can be emailed to [email protected] with the subject line “Instructions for Form 6765.”
The IRS will review submissions from businesses, tax professionals, and industry associations as part of its ongoing effort to improve clarity and fairness in the reporting process.
Timeline for Revised Instructions
The IRS plans to release revised Form 6765 instructions in January 2026, applicable to tax year 2025 (processing year 2026).
These updates are expected to reflect stakeholder feedback and streamline reporting requirements for taxpayers of varying sizes. The revision period underscores the IRS’s commitment to effective stakeholder engagement and responsive tax policy implementation.
Section G: Optional for 2025, Mandatory in 2026
While engagement continues, Section G of Form 6765 will remain optional for all filers during the 2025 tax year (processing year 2026).
This transition period gives businesses time to familiarize themselves with the updated section and prepare for future reporting. Beginning with tax year 2026 (processing year 2027), Section G will become mandatory for most filers, with specific exceptions for smaller taxpayers.
Exceptions for Qualified Small Businesses
For tax year 2026 and beyond, Section G reporting will remain optional for certain small entities, including:
- Qualified small business (QSB) taxpayers, as defined in Section 41(h)(3) of the Internal Revenue Code, who elect to claim a reduced payroll tax credit.
- Taxpayers with total qualified research expenses (QREs) of $1.5 million or less and gross receipts of $50 million or less at the control group level, as defined in Section 448(c)(3).
These exceptions are intended to minimize the administrative burden on smaller organizations while maintaining transparency and accountability in credit claims.
Extended Research Credit Claim Transition Period
In addition to extending the feedback period, the IRS is also lengthening the transition period for research credit refund claims.
Taxpayers will continue to have 45 days to perfect a research credit claim before the IRS makes a final determination. This extension is effective through January 10, 2027, providing additional flexibility and certainty for taxpayers.
Requirements for Research Credit Claims
To be considered sufficient for IRS review, refund claims for the research credit—postmarked after June 18, 2024—must include detailed supporting information. Taxpayers must:
- Identify all business components related to the research credit claim for that year.
- Describe the specific research activities conducted for each business component.
- Report the total qualified expenses, including employee wages, supply costs, and contract research costs.
Taxpayers may use Form 6765, Credit for Increasing Research Activities, to meet these documentation requirements.
Ongoing Commitment to Transparency
The IRS first released a draft version of Form 6765 in June 2024, followed by draft instructions in December 2024. These publications were accompanied by formal announcements inviting public comment and feedback.
The agency’s decision to extend both the feedback period and the transition timelines demonstrates its commitment to a thoughtful, collaborative approach to regulatory updates.
What Businesses Should Do Now
Businesses and tax professionals are encouraged to review the draft instructions and participate in the feedback process. Engaging early allows organizations to prepare for the upcoming changes and ensure compliance with future reporting obligations.
Those planning to claim the research credit should also review their documentation procedures to align with the IRS’s current guidance.
Looking Ahead
By extending these deadlines and inviting ongoing input, the IRS is prioritizing clarity, collaboration, and consistency in administering the research credit.
These measures are designed to help taxpayers transition smoothly to new reporting requirements while promoting innovation and compliance.
As the January 2026 release of the revised instructions approaches, continued engagement from the tax community will remain vital to shaping an effective final framework.
FAQs
What is IRS Form 6765?
Form 6765, Credit for Increasing Research Activities, allows businesses to claim a tax credit for qualifying research and development expenses such as wages, supplies, and contract research costs.
Why did the IRS extend the feedback period for Form 6765 instructions?
The IRS extended the feedback period through March 31, 2026 to give stakeholders more time to review the draft instructions, provide meaningful input, and reduce taxpayer burden.
When will the revised Form 6765 instructions be released?
The IRS plans to issue revised instructions in January 2026 for tax year 2025 (processing year 2026), reflecting stakeholder feedback and simplifying compliance.
Is Section G of Form 6765 mandatory?
Section G will be optional for all filers in tax year 2025 (processing year 2026). Beginning with tax year 2026 (processing year 2027), it becomes mandatory for most filers, with some exceptions for small businesses.
Who is exempt from mandatory Section G reporting?
Qualified small businesses claiming a reduced payroll tax credit and taxpayers with $1.5 million or less in qualified research expenses and $50 million or less in gross receipts are exempt.
How long is the research credit claim transition period?
The IRS has extended the transition period that allows taxpayers 45 days to perfect a research credit claim for refund through January 10, 2027.
How can businesses provide feedback to the IRS?
Comments and feedback about the draft Form 6765 instructions can be emailed to [email protected] with the subject line “Instructions for Form 6765.”
