United States: Overview | Research Credit Integrity Alliance

At a glance

Scheme: Credit for increasing research activities under Section 41, claimed on Form 6765.
Tax authority: Internal Revenue Service (IRS), part of the Treasury Department.
Claim notification: No advance notice is required; refund claims must include specified information when filed.
Rules on adviser fees: Circular 230 restricts contingent fees for practitioners, but a 2014 court decision limited it for refund claims filed before an audit.
Preparer identification: A paid preparer must enter an identifying number on the return or refund claim; Form 6765 has no preparer field.
Professional body rules: AICPA members in public practice may not prepare an original or amended return or refund claim for a contingent fee.

This page summarizes the federal rules in the United States that bear on research credit claims and on the way advisers who prepare them are paid. It covers the federal credit only. Each topic is set out in more detail, with its sources, on the pages listed below.

The credit and the tax authority

The research credit is a federal income tax credit under Section 41 of the Internal Revenue Code. The regular credit is 20 percent of qualified research expenses above a base amount, plus amounts for certain basic research and energy research payments. A taxpayer may instead elect an alternative simplified credit of 14 percent of qualified research expenses above half of the average for the three preceding years.1 It is administered by the Internal Revenue Service, part of the Treasury Department.2

A business figures and claims the credit on Form 6765, Credit for Increasing Research Activities. The same form is used to make the reduced credit election under section 280C and the election to apply part of the credit against payroll tax.3 A credit can be claimed on the original return for the year or later, on an amended return or other claim for refund.3

How advisers are paid

Federal tax law does not set a fee scale for research credit work. The rules that do address fees describe several kinds of arrangement. Treasury's Circular 230 defines a contingent fee as any fee based wholly or partly on whether a position on a return avoids challenge or is sustained. That includes a fee based on a percentage of the refund, a percentage of the taxes saved, or one that otherwise depends on the result. It also includes an arrangement to refund some or all of the fee if a position is challenged or not sustained.4 The AICPA Code of Professional Conduct also notes that a member's fees may vary depending, for example, on the complexity of the services.5

Form 6765 and its instructions do not ask who prepared the credit calculation or how that person was paid.3 6

What the rules say

Treasury's rule on contingent fees

Section 10.27 of Circular 230 generally prohibits a practitioner from charging a contingent fee for services in connection with any matter before the IRS, which includes preparing returns and claims for refund. There are exceptions for services connected with an IRS examination or challenge, for claims solely about statutory interest or penalties, and for judicial proceedings.4 Practitioners are attorneys, certified public accountants, enrolled agents and certain other individuals listed in the rules.7

In 2014 the US District Court for the District of Columbia held in Ridgely v. Lew that the IRS lacked statutory authority to regulate the preparation and filing of refund claims filed after the original return but before the IRS has begun an audit, and it granted a permanent injunction.8 In December 2024 Treasury and the IRS proposed replacing section 10.27 with a rule treating a contingent fee for preparing an original or amended return or refund claim before examination as disreputable conduct.9 The text of section 10.27 published in the eCFR on 11 October 2026 is still the 2007 version.4

Professional body rules

The AICPA Code of Professional Conduct says that a member in public practice shall not prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client. Fees based on the findings of governmental agencies are not treated as contingent, and the Code gives examples of when that applies.5

Preparers, penalties and claim information

Any return or refund claim prepared by a tax return preparer must bear the preparer's identifying number.10 A preparer can be penalized where an understatement on a return or claim is due to an unreasonable position the preparer knew or reasonably should have known about.11 A person who makes a refund claim for an excessive amount is liable for a penalty of 20 percent of the excess unless the claim is due to reasonable cause.12

The IRS requires specified information with every research credit refund claim for the claim to be valid. Since 18 June 2024 that means identifying the business components, the research activities for each, and the totals of qualified wage, supply and contract research expenses.6 For tax years beginning after 2025, Section G of Form 6765 asks for information by business component on original returns too, subject to exceptions.3

There is no requirement to notify the IRS before a claim is made. The required information is given with the return or refund claim itself.3 6

Open questions

Several matters were unresolved at the date these pages state the rules.

The 2024 proposal. Comments on the December 2024 proposed rules were due by 24 February 2025.9 No final rule had been published and the eCFR text of section 10.27 was unchanged at 11 October 2026.4
The refund claim transition period. The IRS gives taxpayers 45 days to perfect a deficient research credit refund claim during a transition period that runs through 10 January 2027.6 The IRS guidance read for this page does not say what will apply after that date.
Section G in practice. Section G becomes required for tax years beginning after 2025, with exceptions for some smaller claims on original returns and for qualified small businesses electing the payroll tax credit.3

Sources and dates

All sources are listed on the United States: Sources page. The rules are stated as at 11 October 2026.

Sources

Office of the Law Revision Counsel, 26 U.S.C. 41, Credit for increasing research activities, subsections (a) and (c)(4)(A), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleA-chap1-subchapA-partIV-subpartD-sec41.htm (accessed 11 October 2026). Back
Internal Revenue Service, Publication 5, Your Appeal Rights and How to Prepare a Protest if You Disagree (Rev. 4-2021), page 1 footer ("Department of the Treasury Internal Revenue Service"). https://www.irs.gov/pub/irs-pdf/p5.pdf (accessed 11 October 2026). Back
Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), What's New, Purpose of Form, "Requirements To Complete Section G" and "Research Credit Claims on Amended Returns". https://www.irs.gov/instructions/i6765 (accessed 11 October 2026). Back
Treasury Department, Circular No. 230, 31 CFR 10.27, Fees, paragraphs (b)(1) to (b)(4) and (c)(1) to (c)(2), with source note T.D. 9359 (eCFR text up to date as of 8 October 2026). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-B/section-10.27 (accessed 11 October 2026). Back
American Institute of CPAs, Code of Professional Conduct (updated for all official releases through September 2026), ET 1.510.001, paragraphs .01b, .03 and .04, and ET 1.510.010, paragraphs .03 to .05. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026). Back
Internal Revenue Service, Research credit claims (Section 41) on amended returns frequently asked questions, introduction and questions 4, 7 and 21 (page last reviewed or updated 1 October 2026). https://www.irs.gov/businesses/corporations/research-credit-claims-section-41-on-amended-returns-frequently-asked-questions (accessed 11 October 2026). Back
Treasury Department, Circular No. 230, 31 CFR 10.2, Definitions, paragraph (a)(5), and 31 CFR 10.3, Who may practice, paragraphs (a) to (f). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-A/section-10.3 (accessed 11 October 2026). Back
US District Court for the District of Columbia, Ridgely v. Lew, Civil Action No. 1:12-cv-00565 (CRC), Memorandum Opinion, 16 July 2014, pages 1 and 14 to 15. https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_12-cv-00565/pdf/USCOURTS-dcd-1_12-cv-00565-1.pdf (accessed 11 October 2026). Back
Treasury Department and Internal Revenue Service, Regulations Governing Practice Before the Internal Revenue Service, notice of proposed rulemaking, 89 FR 104915 (26 December 2024), Dates, Explanation of Provisions part B and proposed section 10.51(b). https://www.federalregister.gov/documents/2024/12/26/2024-29371/regulations-governing-practice-before-the-internal-revenue-service (accessed 11 October 2026). Back
Office of the Law Revision Counsel, 26 U.S.C. 6109, Identifying numbers, subsection (a)(4), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap61-subchapB-sec6109.htm (accessed 11 October 2026). Back
Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsection (a), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026). Back
Office of the Law Revision Counsel, 26 U.S.C. 6676, Erroneous claim for refund or credit, subsections (a) and (b), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026). Back