What to provide
- Form 6765 for the tax year and the three prior years, where the Alternative Simplified Credit is elected.
- The calculation workbook that builds qualified research expenses from wages, supplies and contract research.
- For the regular method, the base-period records.
- For a controlled group, the allocation among members.
What connects to what
| Figure | Should agree to |
|---|---|
| Wage line on Form 6765 | Qualified wages schedule, then the payroll register |
| Supplies line | Invoice schedule, then job sheets |
| Contract research line | 65 percent of the invoiced amounts under qualifying contracts |
| Base amount | Prior-year Forms 6765 under the same definitions |
Consistency
Base-period expenses must be computed on the same basis as the credit year. Reclassifying a category in one year and not the others is a common examiner finding.
Not a calculator
Note.The mock audit tests whether your calculation is supported. It does not produce a credit figure and does not prepare or file a return.