Many companies have sought deductions under IRC Section 199. Recently, the IRS has been cracking down on these deductions. The impact of section 199 has become a top priority issue for many companies. New guidance and documentation procedures are now essential. The new rule can result in billions of dollars of savings for companies or reap significant penalties on companies not in compliance with the law.
The Knowledge Congress is assembling a panel of distinguished professionals and key regulators to provide guidance to organizations that will be primarily affected by this section. The speakers will present their expert opinions in a two-hour webinar.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 083754
Sandy Frost
Domestic Production, Section 199, Technical Advisor
Scott Vance
Principal, Income Tax and Accounting Group
James L. Atkinson
Of Counsel
Beth M. Benko
Partner, Tax Services, National Tax Department
Sandy Frost, Domestic Production, Section 199, Technical Advisor, Internal Revenue Service (IRS)
- Best practices for when an audit is opened
- Significant of a clearly defined “item”
- Substantiation of the “in whole or significant part test”
- Tying numbers to the return
- Impact on deduction for other adjustments made on the return during the examination
Scott Vance, Principal, Income Tax and Accounting Group, KPMG LLP
- Information document requests (IDRs): What do they ask for and how should taxpayers respond?
- Allocation of receipts and cost of goods sold (COGS) - regulatory and systems considerations
- Allocation of expenses under section 861 methodology - selection of methodology
- Non-section 199 issues collateral to section 199 (e.g., methods of accounting)
- Structural issues - expanded affiliated groups; consolidated groups; passthrough entities
- Selected special industry issues - construction/architecture & engineering; software; film; agricultural and horticultural cooperatives; natural resources/energy
James L. Atkinson, Of Counsel, Miller & Chevalier
- Before you even file the return: document everything and get an objective assessment of your section 199 positions
- Getting started with the audit: making an effective opening presentation to the IRS
- Issues arising under the W-2 wage limitation: independent contractors, common paymasters, and partnerships
- Multi-party contracts: who gets the deduction, and how do you convince the IRS?
- The role of the National Office and IRS Counsel in the audit process
- Issues arising in 2008 in connection with the interaction of section 199 with the bonus depreciation available for 2008
Beth M. Benko, Partner, Tax Services, National Tax Department, Ernst & Young LLP
- Section 199 as a Tier I Issue; moving from IRS minimum audit checks to more detailed and taxpayer-specific IDRs (information document request).
- Common issues examining agents and taxpayers are struggling with on audit, including "benefits and burdens of ownership", "definition of item", "substantial in nature", "W-2 wages related to DPGR", "costs related to receipts recognized in a pre-199 year", and "methods under Section 861." As part of this discussion, a comment related to whether the IRS plans to issue any interpretive guidance (i.e., guidance interpreting its regulations) would be appropriate.
- Documentation and data requirements - is there a feasible approach?
- Issues arising from the MLTN (more likely than not) standards of FIN 48 and Section 6694.
- Legislative outlook; is Section 199 in danger of repeal?
- Tax Officers
- Finance Officers
- Accounting Firms
- Auditing Firms
- Publicly Traded Companies
This is a must attend event for anyone interested in understanding Section 199.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A