R&D Tax Credit for Farmers Part II

Course Description

This is Part II of Ag Tax University's two-part Research & Development (R&D) Tax Credit series. Farm R&D credits are won or lost at the return — in the documentation behind the claim, the numbers on Form 6765, and the path the credit takes from the entity return to the owner's Form 1040. This course equips tax professionals to handle every step of that process for farm clients, from the initial audit-defense posture through the final credit computation and pass-through reporting mechanics.

Overview

  • ATU Course #: 203
  • Field of Study: Taxes (Technical)
  • Program Level: Intermediate
  • Prerequisites: None
  • Advance Preparation: None
  • Delivery Method: QAS Self-Study/On Demand
  • Recommended CPE/CE Credit: 2 hours
  • Final Exam: 10 questions - 70% pass threshold
  • Target Audience: CPAs, Enrolled Agents, and tax preparers serving agricultural clients

Learning Objectives

By the end of this course, participants will be able to:

1. Evaluate whether a farm R&D credit claim will withstand IRS examination.

2. Apply substantiation and cost-separation requirements to reconstruct a deficient claim into a defensible position.

3. Calculate the §41 credit on Form 6765 using the Section A and Section B methods.

4. Determine how the §41 credit flows from a pass-through entity through the §41(g) ceiling and Form 3800 limitation to the owner's return.

Course Lessons

Course Outline

Meet Your Instructor

Penny Wade Smith EA

Penny Wade Smith is the second-generation owner of Wade Farm Financial Services of Mayfield Kentucky. She specializes in farm and entity bookkeeping and income taxes, as well as tax, estate, succession and retirement planning for farmers.

For more information on your instructor, please visit our About section.

Education Information

  • ATU Course ID: ATU-TAX-INT-SS-2026-004-v1
  • IRS Program Number: QKKWZ-T-00004-26-0 
  • NASBA Registry ID Number: 170295
  • Field of Study: Taxes (NASBA): Federal Tax Topics/Federal Tax Related Matters (IRS)
  • Delivery Method: QAS Self-Study (NASBA): On-Demand (IRS)
  • Publication Date: July 2026
  • Revision/Review Date: July 2026
  • Course Developer: Penny Wade Smith EA
  • Course Reviewer: Paul G. Neiffer CPA
Participants must complete the final exam within one year of purchase.