The IRS extended the research credit claim transition period through Jan.10, 2026, on Nov. 25. This gives taxpayers 45 days to perfect a research credit claim for refund before the IRS makes its final determination. 

In October 2021, the agency announced that taxpayers would be required to include a research credit claim and made modifications in June 2024 to waive some requirements.  

According to Accounting Today, in June, in response to complaints regarding the stricter rules, the IRS modified its rules to waive some requirements. 

For claims postmarked after Jun. 18, 2024, the exact requirements announced in June 2024 apply, and taxpayers are required to: 

• Identify all the business components to which the Section 41 research credit claim relates for that year; 

• Identify all research activities performed for each business component; 

• Provide the total qualified employee wage expenses, total qualified supply expenses and total qualified contract research expenses for the claim year, which can be done using Form 6765, Credit for Increasing Research Activities. 

According to the IRS, before this most recent update, it did one on Oct. 30, 2023, to extend to Jan. 10, 2025, the transition period during which taxpayers and the other one on Sept. 30, 2022, to extend for another year through Jan.10, 2024, the transition period.