Form 6765, also known as the Credit for Increasing Research Activities, is used to calculate and claim the federal research credit. But not every taxpayer who receives or claims a research credit is required to complete the form.

If you're asking who needs to file Form 6765, the answer depends on how the research credit is generated, the taxpayer's business structure, and whether the taxpayer is making certain elections. The IRS's current instructions state that partnerships and S corporations must file Form 6765 to claim the research credit, while certain other taxpayers may report a pass-through research credit directly on Form 3800 instead.

What Is Form 6765?

Form 6765 is the IRS form used to figure and claim the credit for increasing research activities.

The form can also be used to:

Make the Section 280C reduced-credit election
Calculate the regular research credit
Elect the Alternative Simplified Credit (ASC)
Make the qualified small business payroll-tax-credit election
Report qualified research expenses
Provide business-component information when required

The current IRS instructions are for the January 2025 revision of Form 6765.

Who Needs to File Form 6765?

The most important rule is that partnerships and S corporations must file Form 6765 to claim the research credit.

Other taxpayers generally may not need to file Form 6765 if their only source of the research credit is a partnership, S corporation, estate, or trust. In that situation, the credit can generally be reported directly on Form 3800, General Business Credit.

However, the filing requirements can become more complicated when a taxpayer conducts its own qualified research, belongs to a controlled group, or makes specific research-credit elections.

Do Partnerships Need to File Form 6765?

Yes.

A partnership claiming the federal research credit generally must complete and file Form 6765.

The partnership calculates the applicable research credit and reports the information required under the IRS rules. Partners may then receive their applicable share through the partnership's tax reporting.

Partnerships should maintain documentation supporting:

Qualified research activities
Qualified research wages
Qualified supply expenses
Contract research expenses
Business components
Research-credit calculations

The IRS specifically states that partnerships must file Form 6765 to claim the credit.

Do S Corporations Need to File Form 6765?

Yes.

An S corporation claiming the research credit must generally file Form 6765.

The S corporation calculates the credit at the entity level and provides the applicable information to its shareholders through the appropriate tax reporting.

S corporations should retain records supporting the research activities and expenses used to calculate the credit.

Do C Corporations Need to File Form 6765?

A corporation that conducts qualifying research and claims the research credit may need to complete Form 6765.

However, the exact filing requirements depend on the corporation's circumstances.

For example, a corporation conducting its own qualifying research may use Form 6765 to calculate the research credit. A taxpayer whose only source of the credit is a pass-through entity can generally report that credit directly on Form 3800 instead of completing Form 6765.

Corporations should also pay attention to special requirements when filing an amended return to claim a research credit or refund.

Do Sole Proprietors Need Form 6765?

A sole proprietor may need to use Form 6765 when claiming a research credit generated by the proprietor's own qualifying research activities.

The key issue isn't simply whether the business is a sole proprietorship. The taxpayer must determine whether the research activities and expenses satisfy the applicable requirements for the federal research credit.

If the taxpayer's only source of the credit is a qualifying pass-through entity, different reporting procedures may apply.

Do Individuals Need to File Form 6765?

An individual generally doesn't file Form 6765 simply because they have an interest in a business that performs research.

If the individual receives a research credit from a partnership, S corporation, estate, or trust and that is the individual's only source of the credit, the IRS instructions generally allow the credit to be reported directly on Form 3800.

The filing process can therefore depend on whether the individual generated the research credit directly or received it through another entity.

Who Can Claim the Research Credit?

The research credit is generally available to taxpayers with qualifying research activities and qualified research expenses.

Potential qualifying businesses can operate in areas such as:

Software development
Engineering
Manufacturing
Technology
Product development
Chemical development
Process improvement
Experimental design
Product testing

However, being in a research-oriented industry does not automatically make a business eligible.

The actual activities must satisfy the applicable research requirements.

What Research Activities Can Qualify?

The IRS generally requires qualified research to satisfy several conditions.

Research must generally involve discovering technological information and be intended to develop a new or improved business component.

The applicable rules also consider whether the research:

Has a permitted purpose
Is technological in nature
Involves elimination of uncertainty
Uses a process of experimentation

The four-part test generally must be applied separately to each business component.

What Are Qualified Research Expenses?

Qualified research expenses, commonly called QREs, are used to calculate the research credit.

Potential categories include:

Qualified Research Wages

Certain wages paid to employees performing qualified research services may qualify.

Qualified Supplies

Certain supplies used in qualified research may be included.

Contract Research

Certain payments for qualified research performed by contractors may qualify.

Other Eligible Expenses

Depending on the circumstances, other categories may apply under the research-credit rules.

A business should not assume that every research-related expense qualifies.

When Does a Small Business Need Form 6765?

A small business may need Form 6765 when it is claiming the research credit based on its own qualifying activities.

Certain small businesses can also make a payroll tax credit election.

The IRS defines a qualified small business for this purpose as a corporation, including an S corporation, or partnership that meets specific gross-receipts and business-history requirements. Generally, it must have gross receipts of less than $5 million for the tax year and no gross receipts for any tax year before the five-tax-year period ending with that tax year.

A qualified small business can elect to apply up to $500,000 of research credit against the employer portion of Social Security taxes, subject to the applicable rules.

Do Controlled Groups Need to File Form 6765?

Special rules apply when businesses are members of a controlled group or businesses under common control.

Item B of Form 6765 asks whether the taxpayer is a member of a controlled group or business under common control.

If applicable, the required attachment provides information used to calculate the group's research credit, including qualified research expenses and other information for group members.

Businesses that are part of a related group should carefully review these rules rather than calculating the credit independently without considering the group requirements.

Does Section 280C Require Form 6765?

The Section 280C election is another reason a taxpayer may need to pay attention to Form 6765.

The IRS instructions state that the reduced research-credit election is made at the top of Form 6765, Item A.

The election is made on an original timely filed return, including extensions, and cannot be made or changed on an amended return. Once made, the election is irrevocable for that tax year.

What About the Alternative Simplified Credit?

Eligible taxpayers can calculate the research credit using the Alternative Simplified Credit (ASC) method.

Form 6765 contains a section specifically for the ASC.

The IRS explains that taxpayers may want to calculate their credit under both methods for which they are eligible to determine the applicable credit.

The ASC election has specific rules concerning when it can be made and revoked.

Is Section G Required on Form 6765?

Section G contains Business Component Information.

For tax years beginning before 2026, Section G is optional for all filers under the current instructions, subject to special rules for amended returns.

For tax years beginning after 2025, Section G becomes required, subject to specific exceptions.

The IRS's 2025 tax-year guidance also confirmed that Section G would be optional for all filers for tax year 2025.

This distinction is important when determining which version of the filing requirements applies to your return.

Who Doesn't Generally Need to File Form 6765?

Not everyone receiving a research credit must complete the form.

The IRS states that taxpayers other than partnerships and S corporations are generally not required to complete or file Form 6765 when their only source of the research credit is a partnership, S corporation, estate, or trust.

Instead, they can generally report the credit directly on Form 3800.

For example, an individual shareholder who receives a research credit solely from an S corporation may not need to file Form 6765 personally.

Form 6765 and Amended Returns

Additional requirements can apply when a taxpayer claims a research credit on an amended return or administrative adjustment request.

The IRS requires specific information for certain research-credit refund claims to be considered valid.

This can include identifying the relevant business components, research activities, and qualified research expense categories.

Taxpayers considering an amended research-credit claim should review the current IRS procedures before filing.

Records You Should Keep

If you are required to file Form 6765, maintain documentation supporting the credit calculation.

Useful records can include:

Payroll reports
Employee time records
Research project descriptions
Technical documents
Testing records
Research notes
Invoices
Contractor agreements
General ledger reports
Qualified research expense calculations
Business-component information

Your records should demonstrate both the research performed and the expenses claimed.

Common Mistakes When Filing Form 6765

Assuming All R&D Expenses Qualify

Research-related expenses aren't automatically qualified research expenses.

The activities and expenses must meet the applicable requirements.

Filing the Wrong Version

Always check that you're using the Form 6765 and instructions applicable to your tax year.

Ignoring Pass-Through Rules

A partner or S corporation shareholder may have different filing requirements when the credit comes from a pass-through entity.

Overlooking Controlled-Group Rules

Related businesses may need to calculate the research credit using controlled-group rules.

Weak Documentation

Keep sufficient records showing how the research activities and QREs were identified.

Frequently Asked Questions

Who needs to file Form 6765?

Partnerships and S corporations must file Form 6765 to claim the research credit. Other taxpayers may need to file it when claiming credit generated by their own qualifying research activities or when making applicable elections.

Does every business claiming a research credit need Form 6765?

No. If a taxpayer's only source of the research credit is a partnership, S corporation, estate, or trust, the IRS generally allows the taxpayer to report the credit directly on Form 3800 instead.

Do S corporations file Form 6765?

Yes. An S corporation claiming the research credit generally must file Form 6765.

Do partnerships file Form 6765?

Yes. Partnerships must file Form 6765 to claim the research credit.

Can a small business use Form 6765 for payroll tax credits?

Certain qualified small businesses can make a payroll tax credit election through Form 6765, subject to the applicable requirements and limitations. The maximum amount is $500,000.

Is Form 6765 required for a shareholder receiving an S corporation research credit?

Not necessarily. If the shareholder's only source of the research credit is an S corporation, the credit can generally be reported directly on Form 3800 rather than filing Form 6765 personally.

Is Section G required for 2025?

For tax year 2025, Section G is optional for all filers under the current IRS guidance. For tax years beginning after 2025, it becomes required subject to specified exceptions.

Need Consultation About Form 6765?

If you're unsure who needs to file Form 6765, how to calculate qualified research expenses, or whether a particular research activity qualifies, you can call 1-866-513-4656 for consultation.

Before filing, verify the current IRS instructions and applicable tax rules for your business structure and tax year. A qualified tax professional can review your specific circumstances and explain which filing requirements may apply.

This article is for general informational purposes only and is not tax or legal advice. Form 6765 requirements can vary depending on the taxpayer, entity type, tax year, research activities, and applicable federal rules.

Conclusion

Understanding who needs to file Form 6765 is important before claiming the federal research credit.

Partnerships and S corporations must generally file Form 6765 when claiming the credit. Other businesses may also need the form when they conduct their own qualifying research activities or make certain research-credit elections. However, taxpayers whose only source of the credit is a partnership, S corporation, estate, or trust may generally report the credit directly on Form 3800 instead.

Because filing requirements can depend on entity structure, controlled-group status, elections, and the tax year, review the latest IRS instructions before submitting your return.

Who Needs to File Form 6765? Complete Guide to Research Credit Filing