What is IRS form 6765?

IRS Form 6765 is the form required for claiming the R&D credit on your federal tax return. For C-Corps, this R&D credit form is included in your 1120, for S-Corps it is included in the 1120-S filing. For LLCs, the 6765 is included in whatever form you elect to file, typically the 1120 or 1120-S. For partnerships, the 1065 will include Form 6765. The 6765 includes the credit amount you are claiming, as well as the wage, supply, and contractor expenses that drive the credit calculation. In addition, some important elections must be considered on the 6765 form, including the 280(c) election for reduced credit, and Alternative Simplified Credit election. Endeavor Advisors analyses each of these line items, and advises as to the most appropriate and beneficial election for each taxpayer on a case-by-case basis.

Why is form 6765 used?

IRS Form 6765 is mandated by the IRS for claiming the R&D Credit. This R and D tax credit form has been the main filing for the R&D credit since its inception in 1981. Form 6765 is critical in memorializing the variables required for calculating The Credit, such as qualifying wages, supplies, and contractor expenses that a taxpayer incurs in a given tax year. Although the R&D credit form 6765 is the cornerstone of a Research and Development claim, the bulk of the substantiating and calculation work comes in the form of Endeavor Advisors’ procedural calculations and reporting product. That is to say that the IRS requires a body of substantiating evidence for the numbers claimed on a 6765, which informs the R&D claim process at Endeavor Advisors. In addition to providing the pro-forma 6765 for filing, we also provide the critically important reporting that backs up the claims made on the 6765 form. As a result, Endeavor Advisors provides full audit defense of every dollar and cent of R&D credits that we help our clients claim. We provide a full turnkey solution for claiming R&D credits.

Who must file form 6765?

The taxpayer conducting qualifying R&D activity must file an IRS Federal Form 6765 in order to benefit from R&D credits. The R&D tax credit form 6765 is filed at the entity level, meaning that pass-through entities (S-Corps, Partnerships, and many LLCs) file the 6765 with their 1120-S or 1065. Then, credits pass through to the shareholders, partners, or members of the entity in the proportion of their ownership interest. For C-Corps, the 6765 is included in their Form 1120. The R&D credit offsets tax liability at the entity level for C-Corps.

Download Form 6765

Form 6765 (PDF)

Instructions for filling out Form 6765 (PDF)

This page was last updated by Steven Jefferies