Sect. 199 Domestic Production Activities Deduction
Managing Ongoing Compliance Challenges With the Key Federal Tax Incentive
Recording of a 110-minute CPE webinar with Q&A
This seminar will identify a discrete list of widespread, ongoing challenges involving claims for the federal Sect. 199 domestic production activities deduction. The panel of federal tax advisors will outline alternative approaches on more efficient compliance in those areas.
- Background on Sect. 199 deduction
- Created under American Jobs Creation Act of 2004
- Help for manufacturers, after Congress pressured to eliminate extraterritorial income exclusion
- Taxpayers in “qualified production activities” can deduct 6% of qualifying income (9% in 2010)
- Finalized IRS regs adopted in May 2006
- Examples of key ongoing compliance challenges with deduction, and best practices for meeting them
- Reviewing MPGE business activities for those qualifying for deduction
- Reviewing W-2 wages for highest amount allocable to domestic production gross receipts
- Identifying and validating property items that qualify
- Setting method to allocate gross receipts between DPGR and other activities
- Reviewing structure of manufacturing contracts
- Modifying cost accounting systems so that U.S. MPGE activities meet “substantial in nature” test
- Statistical sampling methods
- Partnership and S corporation issues in claiming deduction
The panel will address these and other compliance challenges:
- Reviewing what qualifies for the deduction: Business activities, products sold, wages.
- Evaluating internal systems and processes: Cost, gross receipts and wage segregation and allocation systems plus statistical sampling methods.
- Anticipating special issues for certain business entities and industries: Partnerships, S corporations, the software and construction industries.
- Reviewing manufacturing contracts: Verifying they're written in a way to give your company benefits of the deduction.
Tax Senior Manager
As a member of her firm's Sect. 199 and Corporate Tax Consulting Groups, she has extensive experience with federal and... | Read More
As a member of her firm's Sect. 199 and Corporate Tax Consulting Groups, she has extensive experience with federal and state tax returns for corporate clients in retail, manufacturing, healthcare and other industries. She also works on IRS exam support and tax controversy matters.Close
Associate, Tax Services Group
His tax work emphasizes the Sect. 199 deduction and R&D tax credits, among other areas. He works with corporate,... | Read More
His tax work emphasizes the Sect. 199 deduction and R&D tax credits, among other areas. He works with corporate, flow-through and individual taxpayers on a variety of business transactions and federal and state audits.Close
National Leader, R&D/Federal Credit and Incentives
He is a managing director in the firm's National Tax Office. His responsibilities include client service, technical... | Read More
He is a managing director in the firm's National Tax Office. His responsibilities include client service, technical development and risk management for the R&D tax credit, cost segregation, domestic production deduction and energy credits practice areas. Previously, he had primary leadership responsibilities at the firm for income tax accounting.Close
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On-Demand Seminar Audio