The Internal Revenue Service has told examiners in its Large Business and International Division to stop using a nine-question test it instituted last year and instead have taxpayers certify that they meet the benefits-and-burdens-of-ownership requirement to take the Sec. 199 domestic production activities deduction in contract manufacturing situations. While abandoning the test is probably easier on IRS examiners, it does require more paperwork from taxpayers -- including certification from the other party that it won't claim the deduction.

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