Learn how the “Big Beautiful Bill” impacts R&D tax credit documentation, including critical changes to Section G of Form 6765. Explore new IRS reporting requirements for taxpayers with significant R&D expenditures and higher revenues, and discover strategies for CPAs to navigate increased audit exposure and ensure compliance with R&D claims.
Explore how the “Big Beautiful Bill” impacts R&D Tax Credits and Section 174 compliance for amended returns. Learn about special provisions for small businesses, Section 280C elections, and planning strategies for taxpayers looking to optimize deductions for 2022-2024 returns.
Discover how the reinstatement of Section 174 expensing affects R&D tax credit planning. Learn strategies for CPAs to optimize deductions, amend prior-year returns, and ensure compliance under the One Big Beautiful Bill (OBBB) tax reforms. Maximize R&D incentives and navigate IRS scrutiny.
With Section 174 amortization repealed and expanded R&D Credit reporting now in effect, CPA firms face critical decisions about amending returns, modeling tax strategies, and ensuring compliance ahead of 2025. This blog breaks down the planning paths available to taxpayers and highlights what firms must do now to prepare clients for new opportunities and obligations.
Host TJ Sponsel is joined by David Seibel, EA, a shareholder in the R&D Tax Credit practice, to discuss the impactful One Big, Beautiful Bill and its implications on the R&D Tax Credit.
The enactment of the “Big Beautiful Bill” brings long-awaited clarity to Section 174, but also ushers in a new era of complexity for R&D tax planning.
With the “Big Beautiful Bill” now enacted into law, sweeping tax changes are officially underway—impacting provisions critical to year-end planning, entity strategy, and client advisory services. CPAs and tax professionals must act quickly to understand how these updates affect their clients across industries.
Just days after the latest tax legislation—informally dubbed the “Big Beautiful Bill”—was signed into law, significant planning opportunities are already emerging. With provisions impacting bonus depreciation, Section 179 expensing, and the long-awaited fix to Section 174, CPA firms should begin evaluating client strategies now to ensure compliance and maximize benefit.
Host Dave McGuire and Jerry Hammel, CPA, break down the newly signed “Big Beautiful Bill”—including the return of 100% bonus depreciation and critical updates to Section 174—and what CPAs should do now to prepare their clients.
Host Jerry Hammel, CPA, sits down with David Seibel, EA, to unpack the new reporting requirements for Form 6765, with a deep dive into the implications of Section G.
Form 6765 Section G: How the Big Beautiful Bill Raises the Stakes for R&D Documentation
With the passage of the “Big Beautiful Bill,” taxpayers are re-evaluating how they treat Section 174 expenses and R&D tax credit claims. One of the most critical takeaways? Proper documentation is more important than ever.
Key Changes to Section 174 and Form 6765
Full Section 174 expensing has been restored, and aligns with additional IRS requirements for a new section on the Federal Form 6765 (Section G) that requires additional reporting and documentation for applicable R&D credit claims. Additional IRS scrutiny is expected post-reform, as more taxpayers will be amending returns and navigating the compliance options for treating Section 174 expenses, making the accurate completion of Section G even more critical.
Breaking Down Section G
Section G is required for any taxpayer that:
- Claims over $1.5M of Qualified Research Expenditures (QREs) or,
- Has over $50M in annual revenue in 2025
Section G appears on the current Form 6765 but is optional for all taxpayers in 2024. To complete Section G, taxpayers must report the number of business components related to R&D expenses, along with an identifier or name, type, and information sought to be discovered.
Wage expenses must be broken out by project and by direct research, supervision, and support. Supplies, computer leasing, and contract research must also be reported by project. Prior to 2025, expenses were not required to be reported by project. However, due to IRS scrutiny and deficiencies in prior filings, Section G was added to the Federal Form 6765.
Next Steps for CPA Firms and Taxpayers Navigating R&D Compliance
With an expected increase in R&D claims and higher R&D spending projected due to the “Big Beautiful Bill” tax changes, accurate completion of Federal Form 6765, including Section G, should be a top priority for taxpayers. There is also increased audit exposure when amending returns for prior years’ credits and Section 174 expense adjustments, so contemporaneous documentation to demonstrate compliance is crucial.
As CPAs engage in more discussions with clients post-reform, it is essential to ensure proper R&D documentation and reporting, regardless of whether the client falls under Section G reporting requirements or not.
If you have any questions about how McGuire Sponsel can help substantiate R&D claims and complete Section G of the Federal 6765, please reach out to McGuire Sponsel’s R&D Tax Credit Services team.
You can also dive deeper into the “Big Beautiful Bill” by exploring our “Big Beautiful Bill” resource hub for more insights.
Jamie Skerston is a Senior Manager in the firm’s R&D Tax Credit practice, leading projects across a number of clients and industries. Jamie ensures all teams and projects deliver maximum value to our partners.
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