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File: Harris Macro Final.doc Created on: 6/2/2007 12:38:00 PM Last Printed: 7/19/2007 10:49:00 AM THE DOMESTIC PRODUCTION ACTIVITIES DEDUCTION Philip E. Harris I. II. Background ..............................................................................................
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Form domestic production activities, also known as Form 8903, is a tax form used by taxpayers to claim the domestic production activities deduction (DPAD) for eligible production activities conducted within the United States.
Any taxpayer engaged in eligible production activities that meet the criteria set by the Internal Revenue Service (IRS) is required to file Form 8903.
To fill out Form 8903, taxpayers need to provide their name, identification number, and calculate the deduction amount based on eligible production activities. The form instructions provided by the IRS should be followed.
The purpose of Form 8903 is to allow eligible taxpayers to claim the domestic production activities deduction, which provides a tax incentive for certain manufacturing, production, and construction activities conducted within the United States.
On Form 8903, taxpayers need to report their name, identification number, total income from eligible production activities, qualified production activities income, and deductions related to domestic production activities.
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