When the IRS releases Form 941 for 2017, you’ll notice a couple extra lines.

That’s because the IRS is creating a new tax credit for 2017 – and the agency recently released a new draft of the form.

The new credit is set to go on Line 11 as “Qualified small business payroll tax credit for increasing research activities.”

Entering amounts on this line will require you to attach Form 8974, not yet released by IRS.

The new Line 12 will be for “Total taxes after adjustments and credits.”

To get that total, you’ll subtract Line 11 from Line 10, “Total taxes after adjustments.”

Get the word out now

Let you CFO know the tax credit will be available, especially in case your company is currently – or is planning on – doing extra research.

Alerts will be sent out to future updates to Form 941 and Form 8974.

In the meantime, you can download the draft version of the 2017 Form 941 at the link below.

Cite: irs.gov/pub/irs-dft/941—dft.pdf