Instructions For Form 6765 - Credit For Increasing Research Activities

Form 6765 (2008)

Page

Line 11

2. You previously elected the

proportion as income was allocated

alternative incremental credit and are

and enter the beneficiaries’ share on

Enter the average annual gross

not revoking the election on this

line 64.

receipts (reduced by returns and

return.

allowances) for the 4 tax years

Paperwork Reduction Act Notice.

preceding the tax year for which the

Section C—Alternative Simplified

We ask for the information on this

credit is being determined. You may

Credit

form to carry out the Internal Revenue

be required to annualize gross receipts

Complete this section only if, instead

laws of the United States. You are

for any short tax year. For a foreign

of the regular credit or the alternative

required to give us the information.

corporation, include only gross

incremental credit:

We need it to ensure that you are

receipts that are effectively connected

complying with these laws and to

1. You are electing the alternative

with a trade or business in the United

allow us to figure and collect the right

simplified credit, or

States (or in Puerto Rico or a U.S.

amount of tax.

possession, if applicable).

2. You previously elected the

You are not required to provide the

alternative simplified credit and are not

For a tax year that the credit

information requested on a form that

revoking the election on this return.

terminates, the average annual gross

is subject to the Paperwork Reduction

receipts for the four tax years

Act unless the form displays a valid

Line 54

preceding the termination tax year is

OMB control number. Books or

prorated for the number of days the

Enter your qualified research expenses

records relating to a form or its

for the prior three tax years. If the

credit applied during the tax year. For

instructions must be retained as long

more information, see section 41(h).

credit terminates during the tax year,

as their contents may become material

prorate the qualified research

in the administration of any Internal

Line 17

expenses for the prior three tax years

Revenue law. Generally, tax returns

for the number of days the credit

If you do not elect the reduced credit,

and return information are confidential,

applied during the tax year. For more

which can only be claimed on an

as required by section 6103.

information, see section 41(h).

original timely filed return (with

The time needed to complete and

extensions), you must reduce your

file this form will vary depending on

Section D—Summary

otherwise allowable deduction for

individual circumstances. The

qualified research expenses or basic

Line 60

estimated burden for individual

research expenses by the amount of

taxpayers filing this form is approved

If the credit on line 17, 42, or 59

the credit on this line. If the credit

under OMB control number 1545-0074

includes amounts paid to employees

exceeds the amount allowed as a

and is included in the estimates

as wages, and you are also claiming a

deduction for the tax year, reduce the

shown in the instructions for their

credit for employer differential wage

amount chargeable to capital account

individual income tax return.

payments based on payments you

for the year for such expenses by the

made to the same employees, enter

The estimated burden for all other

amount of the excess. Attach a

on line 60 the portion of the credit

taxpayers who file this form is shown

schedule to your tax return that lists

from Form 8932, line 2, that is

below. The estimated average time is:

the deduction amounts (or capitalized

attributable to wages that were also

expenses) that were reduced. Identify

Recordkeeping

16 hr., 15 min.

used to figure the credit on line 17,

the lines of your return (schedule or

Learning about the law

line 42, or line 59 (whichever applies).

forms for capitalized items) on which

or the form

2 hr., 22 min.

the reductions were made.

See Form 8932, Credit for Employer

Preparing and sending the form

Differential Wage Payments, for more

Section B—Alternative

to the IRS

2 hr., 45 min.

information on the credit.

Incremental Credit

If you have comments concerning

Line 64

Complete this section only if, instead

the accuracy of these time estimates

Estates and trusts. Allocate the credit

of the regular credit or the alternative

or suggestions for making this form

for increasing research activities on

simplified credit:

simpler, we would be happy to hear

line 63 between the estate or trust and

from you. See the instructions for the

1. You are electing the alternative

the beneficiaries in the same

tax return with which this form is filed.

incremental credit, or

Instructions For Form 6765 - Credit For Increasing Research Activities - 2008 Page 3

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