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Understanding and Protecting Vital U S Defense Supply Chains

Toggle open close The United States has entered a new era of great-power competition with China. As the country makes this shift, policymakers are forced to reevaluate some lingering assumptions that drove defense policy during the Cold War, the country’s last period of sustained great-power competition. The competition with the Soviet Union was a competition between two spheres that rarely overlapped: The United States had very little commerce with the Soviet Union, and the global economy was essentially divided into East and West, with much more trade within each sphere than between the two. The competition we face with China today is very different. In the globalized economy, the United States and China are deeply invested in each other’s economies and highly interdependent as a result. The U.S. defense sector is no exception to this, as large multinational defense contractors and their suppliers seek to drive down costs by moving their supply chains overseas, sometimes to c

Weekly IRS Roundup February 22

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IRS issues alert on improper corporate domestic production activities deduction refund claims

IR-2021-45, February 25, 2021 WASHINGTON IRS officials issued an alert today concerning amended returns and claims for the Domestic Production Activities Deduction (DPAD). This provision of tax law was repealed as part of the Tax Cuts and Jobs Act for taxable years after December 31, 2017. In the wake of the repeal, the IRS has received a wave of questionable amended returns and claims for tax benefits in the billions of dollars. We have no qualms with taxpayers claiming benefits allowed by law, said Doug O Donnell, Commissioner, Large Business and International Division. But a very high percentage of the claims for the now repealed Domestic Production Activities Deduction are not properly supported by those claiming it.

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