New revisions to Form 6765: how they may change taxpayers’ approach to R&D credit claims

Draft Form 6765 reflects new R&D claim requirements and IRS administration

On June 20, 2024, the IRS published Draft Form 6765, Credit for Increasing Research Activities, an update to its “preview” of changes to Form 6765, released on September 15, 2023. The Draft Form 6765 requests detailed qualitative and quantitative information about the business components for which a taxpayer is claiming qualified research expenses and information regarding a taxpayer’s R&D controlled group members. This substantial increase in information requested on Form 6765 would be a new obligation for taxpayers claiming R&D credits. On this webcast, we will review the changes to Form 6765 that would be made if the Draft Form 6765 is finalized, how the information requested by the IRS on the form relates to the IRS’s current administration of R&D credit examinations and how taxpayers might approach R&D credit compliance in light of the Draft Form 6765.

This webcast is relevant to taxpayers with original and amended-return R&D credit claims, taxpayers under examination and taxpayers contemplating R&D credit claims in the future. Understanding the expected changes to Form 6765 will help taxpayers anticipate what will be required to sustain an R&D credit.

The following topics will be discussed:

• Information required on Form 6765 now and expected future information requirements
• The IRS’s administration of R&D credit claims
• Potential approaches to complying with anticipated changes to Form 6765

Panelists

• Alexa Claybon, Principal, National Tax Department, Ernst & Young LLP
• Cate Stewart, Senior Manager, National Tax Department, Ernst & Young LLP

Moderator

• Craig Frabotta, Principal, National Tax Department, Ernst & Young LLP & EY Global Research Credit Leader

EY webcast managed and produced by Ernst & Young LLP’s Tax Technical Knowledge Services Group, Washington, DC: Lynn Fairfax