Project documentation can support Form 6765 Section G business-component reporting. This page explains how project documentation can support Section G. It is educational and is not individualized advice. For the underlying framework, see our page on Form 6765.
What Section G Requires
Section G of Form 6765 requires business-component-level reporting of qualified research expenses. The instructions distinguish reporting requirements for tax years beginning before 2026 (optional) and for tax years beginning after 2025 (required, with exceptions). Because this area has changed repeatedly, the specific requirements should be verified against the current Instructions for Form 6765.
How Project Documentation Supports Section G
Project documentation can support Section G by providing:
- Business component identification — records that identify the business components to which the claim relates.
- Activity descriptions — records that describe the research activities performed for each business component.
- Expense connection — records that connect qualified expenses to specific business components.
- Personnel information — records that identify the individuals who performed or supported the research.
For more on documentation, see our page on R&D tax credit documentation.
Section G Exceptions
The current instructions provide exceptions for certain taxpayers. Qualified small businesses making the payroll tax credit election may be exempt from Section G. Taxpayers with QREs at or below a threshold and average annual gross receipts at or below a threshold, reporting on an original return, may also be exempt. The specific exceptions and thresholds should be verified against the current instructions.
Hypothetical Example
Consider a manufacturer that has project documentation identifying its business components, describing the research activities for each, and connecting qualified expenses to each business component. This documentation can help support the Section G reporting by providing the business-component-level information required.
This example is illustrative only.
Key Takeaway
Project documentation can support Form 6765 Section G by providing the business-component-level information that the section requires. Documentation should connect activities, costs, and business components. Because Section G requirements are tax-year-sensitive, professional review is appropriate.