R&D Tax Credits

What documentation is needed to claim R&D tax credits?

Required documentation includes: payroll records showing time spent on qualifying activities, project descriptions identifying technical uncertainties, supply and contractor invoices, and records of the experimentation process. The IRS updated Form 6765 for 2025 with more detailed reporting requirements. Contemporaneous documentation is strongly recommended.

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Expanded Answer

What information should I expect to receive along with my research and development study to support my claims in case of an audit?

The IRS requires contemporaneous documentation to support an R&D credit claim. While there is no single prescribed format, well-organized records significantly reduce audit risk. Key documentation typically includes:

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Descriptions of each R&D project and its technical objectivesEmployee time records identifying who worked on qualifying activities and for how long.

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Contractor agreements and invoices for technical research work.

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Records of supplies, materials, and cloud computing costs used in developmentNotes on experimentation approaches, design iterations, and testing resultsPayroll records supporting wage calculations.

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Maintaining thorough records from the start , rather than reconstructing them later, is strongly recommended.IRS guidance on record keeping: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping.

What Qualifies

Activities that commonly qualify

Developing new software features or platform capabilities

Improving performance, scalability, reliability, or security

Building internal tools or technical workflows that required experimentation

Testing different technical approaches to solve engineering challenges

What Does Not Qualify

Work that usually does not qualify

Routine bug fixes with no technical uncertainty

Visual-only updates or minor design changes

Marketing, sales, and customer support work

General maintenance that did not require experimentation

Work already solved through an off-the-shelf implementation

Example Case Study

Example of proper R&D documentation in practice

A company maintains clear records of its development activities, including project descriptions, employee time tracking, contractor agreements, and technical notes from testing and iteration.

By organizing this information throughout the year, the company is able to support its R&D credit claim with confidence and reduce risk if the IRS requests additional documentation.

Quick takeaway

If your team had to work through technical uncertainty, there is a good chance the work deserves a closer look.

Common Industry Examples

Companies tracking technical projects and development timelines

Engineering teams logging work across multiple initiatives

Businesses using contractors for technical development

Firms maintaining payroll and expense records tied to R&D

Organizations documenting experimentation and testing processes

Curious if you are missing out on credits?

Start with a quick eligibility check. If it looks promising, we move to a light info request and one technical interview.

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