The IRS is on the prowl for excessive or illegitimate Sec. 199 “manufacturing” deductions.
A new Industry Directive on Domestic Production Deduction (DPD) warns IRS examiners about deductions claimed by a service-based business or a retailer that typically doesn’t produce the goods that it sells. (LMSB-04-1206-018)
Another red flag: when the alleged production income exceeds the taxpayer’s gross receipts.
- Small Business Tax Deduction Strategies No matches