Bulletin No. 2007-23 June 4, 2007

Rev. Proc. 2007–34, page 1345. Qualified production activities income (QPAI) and W–2 wages. This procedure specifies the conditions under which certain partnerships and S corporations may choose to calculate QPAI and W–2 wages as defined in regulations section 1.199–2T(e)(2) at the entity level, as well as the manner for allocating and reporting QPAI and W–2 wages to partners and shareholders for purposes of determining the deduction under section 199.

Rev. Proc. 2007–35, page 1349. Income attributable to domestic production activities; statistical sampling. This procedure provides guidance for determining when statistical sampling may be used for purposes of section 199 of the Code and establishes acceptable statistical sampling methodologies.