What the July 6th R&D Deadline Means for CPA Firms

The July 6 Section 174 deadline is approaching quickly, and for CPA firms, the decisions tied to Section 174A could have major tax planning implications.
In this episode of Let’s Talk Tax, host Dave McGuire is joined by David Seibel, EA , to break down what the July 6, 2026 deadline means for eligible small taxpayers and how CPA firms should be advising clients now.

They explain how taxpayers with average gross receipts under $31 million for 2022–2024 may be eligible to retroactively expense Section 174 research costs for tax years 2022–2024 through the small taxpayer election—but why the July 6 election deadline does not override normal statute expiration dates. For example, a 2022 return originally filed on March 15, 2023 may still have a March 15, 2026 statute deadline, making timing critical.

The conversation also covers alternative Section 174A planning options on the 2025 return, including one-year accelerated deductions, two-year accelerated deductions, or continuing amortization schedules. Dave and David walk through real-dollar examples showing how these decisions can significantly impact tax strategy, especially when combined with bonus depreciation, Qualified Production Property (QPP), and other current-year elections.

They also discuss why Section 41 R&D tax credits are regaining attention, how IRS documentation requirements for amended claims have become much stricter, and what CPA firms need to know about expanded Form 6765 reporting requirements. This includes optional Section G reporting for 2024–2025 and required reporting for certain taxpayers beginning in 2026, along with the return of the Section 280C reduced-credit election and its planning implications for pass-through entities and C corporations alike.

If your clients have R&D expenses, manufacturing operations, or significant tax planning decisions ahead, this is a conversation you do not want to miss.