We have revised the January 2025 Instructions for Form 6765 to provide additional clarification regarding qualified research expenses and group reporting. The text for the following has been revised.
- Line 5
- Electing the ASC
- Line 20
- The first paragraph under Section E—Other Information
- The first two paragraphs under Section F—Qualified Research Expenses Summary
The revised text is below.
Line 5
Enter your total QREs calculated from Section F, line 48. See Line 48, later. If you are a member of a controlled group filing separately, enter only the member’s QREs and not the group total QREs. This amount must be computed and shown on the required group credit attachment (see instructions for this attachment under Item B—Controlled Group/Common Control, earlier).
Refer to Section F—Qualified Research Expenses Summary and Section G—Business Component Information, later, for reporting QREs by group members that file separate tax returns.
Electing the ASC
We have deleted the second paragraph under “Electing the ASC.” Prior to deletion, this paragraph read as follows: “Group members filing separate tax returns enter the average annual gross receipts computed for the entire group.”
Line 20
Enter your total QREs calculated from Section F, line 48. See Line 48, later. If you are a member of a controlled group filing separately, enter only the member’s QREs and not the group total QREs. This amount must be computed and shown on the required group credit attachment (see instructions for this attachment under Item B—Controlled Group/Common Control, earlier).
Refer to Section F—Qualified Research Expenses Summary and Section G—Business Component Information, later, for reporting QREs by group members that file separate tax returns.
Section E—Other Information
Complete this section to provide additional details or information about the total QREs reported in Section F. If you are a member of a controlled group, complete this section for only the filing member’s QREs.
Section F—Qualified Research Expenses Summary
Before completing Section F complete Section G first (unless you are not required to complete Section G). See Requirements To Complete Section G, later, to determine your requirement.
Report your QREs on each applicable line. Group members filing separate tax returns report only the member’s QREs (not the combined group amount of QREs) for each applicable line in this section.