Proposed Rule Said to Shrink Domestic Production - McDermott Will & Emery

Proposed Rule Said to Shrink Domestic Production

Overview


Robin Greenhouse and Kevin Spencer were authors of a comment letter to the IRS, cited in this article, regarding a proposal to grant the domestic production deduction in every case to contract manufacturers. The letter suggested an existing Tax Code rule, which attributes the activity of the contract manufacturer to the principal, as a replacement for the benefits and burdens of ownership test.