IRS Allows More Time For Contract Manufacturing Deduction

Law360, New York (October 30, 2013, 4:50 PM EDT) -- Taxpayers in contract manufacturing arrangements that seek a domestic production activities deduction from the Internal Revenue Service may have extra time to submit evidence supporting their case under updated guidance issued by the IRS on Tuesday.

In July, the IRS slashed a three-part test previously used to determine whether a taxpayer in a contract manufacturing agreement — where a manufacturer contracts an outside company to provide products or items it needs — is entitled to the deduction. Instead, the taxpayer must now submit supporting statements plus a...
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