Register interest with Swanson Reed (opens in a new tab)
  1. Home
  2. Policy
  3. Recommendations
  4. Preparer identification

Proposal 3 of 6

Our position

Preparer identification

Every federal research credit claim should name the person who prepared the credit calculation and the person who reviewed its technical basis, not only the preparer who signs the return.

These proposals are the position of Swanson Reed, the publisher of this site.

On this page
  1. The problem
  2. The proposal
  3. Who would act
  4. Expected effect
  5. Objections and response
  6. Sources

The problem

Federal law already requires a paid preparer to be identified on a return or claim for refund. Any return or claim for refund prepared by a tax return preparer must bear the identifying number prescribed for that preparer, the preparer's employer, or both.1Source 1U.S. Government Publishing Office, United States Code, 2024 Edition, 26 U.S.C. § 6109, Identifying numbers, § 6109(a)(4). https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap61-subchapB-sec6109.htm (accessed 11 October 2026). Under Treasury regulations, the number required is that of the preparer who must sign the return or claim, which for returns filed after 2010 is the individual's preparer tax identification number (PTIN), together with the employer identification number of the preparer's firm where there is one.2Source 2Treasury Department, 26 CFR § 1.6109-2, Tax return preparers furnishing identifying numbers for returns or claims for refund and related requirements, § 1.6109-2(a)(1) to (3). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.6109-2 (accessed 11 October 2026). The signing preparer is the individual with primary responsibility for the overall substantive accuracy of the return or claim, and must sign it.3Source 3Treasury Department, 26 CFR § 301.7701-15, Tax return preparer, § 301.7701-15(b)(1); and 26 CFR § 1.6695-1, Other assessable penalties with respect to the preparation of tax returns for other persons, § 1.6695-1(b)(1). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-F/part-301/section-301.7701-15 and https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.6695-1 (accessed 11 October 2026). The corporate income tax return and the amended corporate return each carry a "Paid Preparer Use Only" block for the preparer's name, signature, PTIN, firm name and firm EIN.4Source 4Internal Revenue Service, Form 1120, U.S. Corporation Income Tax Return (2025), page 1, Paid Preparer Use Only; and Form 1120-X, Amended U.S. Corporation Income Tax Return (Rev. December 2025), Paid Preparer Use Only. https://www.irs.gov/pub/irs-pdf/f1120.pdf and https://www.irs.gov/pub/irs-pdf/f1120x.pdf (accessed 11 October 2026).

The research credit calculation can be prepared by someone other than the person who signs the return. The regulations recognize that a person can be a tax return preparer without signing: a nonsigning tax return preparer is one who prepares all or a substantial portion of a return or claim, including by giving advice that leads to a position or entry that is a substantial portion of the return.5Source 5Treasury Department, 26 CFR § 301.7701-15, Tax return preparer, § 301.7701-15(a) and (b)(2)(i). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-F/part-301/section-301.7701-15 (accessed 11 October 2026). The identification rule, however, attaches the number of the preparer required to sign.2Source 2Treasury Department, 26 CFR § 1.6109-2, Tax return preparers furnishing identifying numbers for returns or claims for refund and related requirements, § 1.6109-2(a)(1) to (3). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.6109-2 (accessed 11 October 2026). Form 6765 itself has no field identifying who prepared the credit calculation or who reviewed whether the activities claimed meet the tests for qualified research.6Source 6Internal Revenue Service, Form 6765, Credit for Increasing Research Activities (Rev. December 2024), pages 1 to 4. https://www.irs.gov/pub/irs-pdf/f6765.pdf (accessed 11 October 2026).

As a result, when the person who prepared the research credit is not the person who signed the return, the IRS has no field on the claim that tells it who that person is.

The proposal

Our position:

Every Form 6765 should identify:

  1. The claim preparer: the individual who prepared or directed the credit calculation for compensation, with that person's PTIN and the firm's EIN, or a statement that the calculation was prepared within the business without a paid adviser.
  2. The technical reviewer: the individual who reviewed whether the activities and costs claimed meet the requirements of Section 41, with a short statement of that person's role.

Where the signing preparer did this work, the same name would appear. Where a separate adviser did it, the adviser would be named on the claim the adviser prepared.

This proposal supports, and does not replace, our position that Congress should prohibit contingent fees in Section 41 engagements.

Who would act

Treasury and the IRS. The statute already provides that a claim for refund prepared by a tax return preparer shall bear the identifying number "as may be prescribed",1Source 1U.S. Government Publishing Office, United States Code, 2024 Edition, 26 U.S.C. § 6109, Identifying numbers, § 6109(a)(4). https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap61-subchapB-sec6109.htm (accessed 11 October 2026). and the content of Form 6765 is set by the IRS. Treasury could extend the identification rule in the regulations to nonsigning preparers of the research credit portion of a return or claim, and the IRS could add the fields to the form.

Congress could reinforce the rule by extending the existing penalty for failing to furnish a preparer identifying number,7Source 7U.S. Government Publishing Office, United States Code, 2024 Edition, 26 U.S.C. § 6695, Other assessable penalties with respect to the preparation of tax returns for other persons, § 6695(c). https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6695.htm (accessed 11 October 2026). so that it clearly applies to the claim preparer named under this proposal.

Expected effect

Our position:

The IRS would be able to link research credit claims to the people who prepared them, which supports both fair review of claims and recognition of preparers whose claims hold up well. Businesses would see who is putting a name to their claim. Advisers who prepare careful claims lose nothing by being named; the proposal makes responsibility visible rather than changing it.

Objections and response

"The signing preparer is already accountable for the return." The signing preparer has primary responsibility for the overall substantive accuracy of the return.3Source 3Treasury Department, 26 CFR § 301.7701-15, Tax return preparer, § 301.7701-15(b)(1); and 26 CFR § 1.6695-1, Other assessable penalties with respect to the preparation of tax returns for other persons, § 1.6695-1(b)(1). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-F/part-301/section-301.7701-15 and https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.6695-1 (accessed 11 October 2026).

Our position:

That is right, and this proposal does not change it. But a signing preparer may rely on a credit calculation prepared by someone else, and the IRS cannot currently see from the claim who that is. Naming both people places the information where it is needed without shifting responsibility.

"Naming a technical reviewer exposes individual employees." Some reviewers are engineers or scientists inside the business, not tax professionals.

Our position:

The proposal asks for a name and a role, which the IRS can use to direct questions. It does not create a new penalty for the reviewer. Where the reviewer is an employee of the business, the business can say so.

"This adds another field to a long form." Form 6765 is already detailed.

Our position:

Two names, two numbers and a role description are a small addition to a form that already asks for information by business component. The cost is low compared with the time the IRS and businesses spend, during an examination, establishing who prepared the calculation.

Sources

  1. U.S. Government Publishing Office, United States Code, 2024 Edition, 26 U.S.C. § 6109, Identifying numbers, § 6109(a)(4). https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap61-subchapB-sec6109.htm (accessed 11 October 2026).   Back
  2. Treasury Department, 26 CFR § 1.6109-2, Tax return preparers furnishing identifying numbers for returns or claims for refund and related requirements, § 1.6109-2(a)(1) to (3). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.6109-2 (accessed 11 October 2026).   Back
  3. Treasury Department, 26 CFR § 301.7701-15, Tax return preparer, § 301.7701-15(b)(1); and 26 CFR § 1.6695-1, Other assessable penalties with respect to the preparation of tax returns for other persons, § 1.6695-1(b)(1). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-F/part-301/section-301.7701-15 and https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.6695-1 (accessed 11 October 2026).   Back
  4. Internal Revenue Service, Form 1120, U.S. Corporation Income Tax Return (2025), page 1, Paid Preparer Use Only; and Form 1120-X, Amended U.S. Corporation Income Tax Return (Rev. December 2025), Paid Preparer Use Only. https://www.irs.gov/pub/irs-pdf/f1120.pdf and https://www.irs.gov/pub/irs-pdf/f1120x.pdf (accessed 11 October 2026).  Back
  5. Treasury Department, 26 CFR § 301.7701-15, Tax return preparer, § 301.7701-15(a) and (b)(2)(i). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-F/part-301/section-301.7701-15 (accessed 11 October 2026).  Back
  6. Internal Revenue Service, Form 6765, Credit for Increasing Research Activities (Rev. December 2024), pages 1 to 4. https://www.irs.gov/pub/irs-pdf/f6765.pdf (accessed 11 October 2026).  Back
  7. U.S. Government Publishing Office, United States Code, 2024 Edition, 26 U.S.C. § 6695, Other assessable penalties with respect to the preparation of tax returns for other persons, § 6695(c). https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6695.htm (accessed 11 October 2026).  Back

The other proposals

  • Policy

    Fee disclosure on the claim

    When a business files a federal research credit claim, it should state how the person who prepared the claim was paid. Form 6765 is the natural place to ask.

  • Policy

    Limits on contingent fees for refund claims

    Congress should restore and extend, by statute, the restriction on contingent fees for amended returns and refund claims that include the federal research credit, as the first part of a full prohibition on contingent fees in Section 41 engagements.

  • Policy

    Shared responsibility for overclaims

    When a research credit claim is excessive and the preparer knew or should have known it, the preparer's exposure should reflect the size of the overclaim, not only the fee earned.

  • Policy

    Professional standards for claim preparers

    Anyone who prepares a federal research credit claim for a fee should meet minimum standards of competence, diligence and conduct, whatever their professional background.

  • Policy

    Data and reporting

    The IRS should publish regular aggregate data on federal research credit claims, the reviews it carries out and the adjustments that result, so that the debate on how claims are prepared can rest on evidence.