On February 16, 2016, TEI submitted comments to the Internal Revenue Service offering a definition of "minor assembly" for purposes of the domestic production activities deduction ("DPAD") of 26 U.S.C. § 199. We submitted these comments pursuant to the REG-136459-09 notice of proposed rulemaking, which proposed various changes in the regulations surrounding the DPAD. These comments also offered an alternative new Example 9 from what was suggested in REG-136459-09, an example generally regarding as attempting to overturn by regulation the holding in United States v. Dean, 945 F. Supp. 2d 1110 (C.D. Cal. 2013).
TEI's Federal Income Tax Committee prepared these comments. Katrina Welch chairs the Committee, and TEI Tax Counsel John Schoenecker coordinated the preparation of TEI's comments.