IRS: Section G optional for tax year 2025 - Form 6765

On October 1, 2025, the IRS announced they are still gathering feedback on draft instructions for Form 6765. Feedback for the Credit for Increasing Research Activities form remains ongoing.

After publishing the drafts last year, the IRS received feedback requesting more time. Many commenters asked for an extension to share feedback on Form 6765 and its instructions.

The IRS has extended the comment period for draft instructions through March 31, 2026. This decision aims to reduce taxpayer burden and promote effective tax administration.

Businesses now have more time to meet specific reporting requirements related to the R&D credit.

Section G – Business Component Information on the form 6765 will be optional for all filers for tax year 2025.

The IRS originally announced on June 21, 2024 that Section G would be required starting in tax year 2025.

For tax year 2026, Section G will be mandatory for all filers except:

Qualified small business (QSB) taxpayers, defined in section 41(h)(3) of the Internal Revenue Code who check the box to claim a reduced payroll tax credit; or
Taxpayers with total qualified research expenses (QREs) equal to or less than $1.5 million, determined at the controlled group level and equal to or less than $50 million of gross receipts, as determined under section 448(c)(3) (without regard to subparagraph (A) thereof), claiming a research credit on an original filed return.

For more information on what Section G’s proposed requirements will be, mandatory for most taxpayers starting in tax year 2026, see Leyton’s previous article on Revisions to Form 6765.

The credit and incentives landscape is ever-changing. Taxpayers must stay up to date on current filing requirements for such benefits.

Contact Leyton to get a better understanding of the most recent legislative updates, and to start your R&D study today!

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