IRC Section 199

CHALLENGE
The American Jobs Creation Act of 2004 established Code Section 199, which provides a deduction and incentive for businesses engaged in U.S. domestic manufacturing activities. The definition of manufacturing is very broad and includes manufacturers, construction contractors, engineers, architects, farmers and fishermen, filmmakers and producers of electricity, natural gas and drinking water. A large number of taxpayers stand to benefit from the deduction.However, the mechanics of this new deduction are very complicated. Businesses need professional help to be sure they’re receiving the maximum tax benefit available under the section.

SOLUTION
True Partners understands the complexities of Section 199, the manufacturing industry and, in particular, the inventory area. We can put our more than 20 years of experience to work to ensure you get the maximum benefits allowable under the law. Among the services we provide, our experts will:

•  Assist in identifying qualified domestic production activities and providing documentation to support the conclusions

•  Ensure that you receive the full advantage of the deduction as it increases from 3% of manufacturing income in 2005 to 9% phased in over the next six years using appropriate methodology for allocating cost and expenses

•  Help you understand the interplay between Section 199 and the uniform capitalization rules

•  Provide computation of LIFO and FIFO inventory related to manufacturing activities

THE TRUE PARTNERS TEAM
John P. Bennecke Managing Director
312 235 3337 | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Joanne Chun Hughes, ESQ Managing Director
312 235 3323 | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Holly L. O’Connor, CPA Managing Director
312 235 3309 | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Lindsay C. Petrella, CPA Manager
781 239 8249 | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it