What's Happening?
The Internal Revenue Service (IRS) is extending the comment period for feedback on the draft instructions for Form 6765, which pertains to the Credit for Increasing Research Activities. This extension, now through March 31, allows stakeholders more time to provide input on the form's instructions. The IRS plans to release revised instructions for the 2025 tax year in January 2026. Additionally, the IRS is extending the transition period for research credit claims, giving taxpayers 45 days to perfect a claim before the IRS makes a final determination. This extension is part of the IRS's efforts to refine the process for claiming research credits.
Why It's Important?
The IRS's decision to extend the feedback period and transition timeline reflects its commitment to improving the process for claiming research credits, which are crucial for businesses investing in innovation. By seeking additional input, the IRS aims to ensure that the form and its instructions are clear and effective, potentially reducing errors and disputes. This could benefit businesses by providing more certainty and efficiency in claiming research credits, which can significantly impact their financial planning and investment in research and development. The changes may also streamline IRS operations by reducing the need for corrections and appeals.
