IC-DISC: Mastering Intricacies of the Federal Tax Incentive for Exporters
Overcoming Compliance Challenges to Maximize Tax Benefits
Recording of a 110-minute CLE/CPE webinar/teleconference with Q&A
Conducted on Wednesday, March 10, 2010
Recorded event now available
This CPE and CLE webinar will prepare tax and accounting professionals for the complex challenges involved in taking advantage of the tax benefits of IC-DISC formation. The panel will review and explain the key strategic steps for entity formation, tax planning and maintaining compliance.
Description
Only one federal tax incentive exists on the books specifically for U.S. businesses with export income: the IC-DISC. With a more than 100% increase in small- to medium-sized exporters since 1992, accounting firms of all sizes can't afford to be in the dark on this lucrative planning strategy.
An IC-DISC, or Interest Charge-Domestic International Sales Corporation, can offer exporters a substantial tax savings by letting them create a books-only entity that pays tax on export income at a 15% capital gains rate rather than a 35% income tax rate.
Accounting professionals and corporate tax specialists must prepare to navigate the highly detailed and often confusing aspects of IC-DISCs. Problems can arise in entity formation, asset management among IC-DISC shareholders, and accurately completing required IRS reports, among other areas.
Listen as our panel of veteran advisors prepares you for the complexities of IC-DISC formation and management in order to capitalize on this lucrative tax-saving strategy.
Outline
- Background And Tax Benefits Of IC-DISCs
- How the IC-DISC came to be
- Tax benefits of IC-DISCs
- Maximizing Tax Benefits of the IC-DISC
- Meeting IRS requirements
- Meeting the three tests for “buy-sell” DISCs
- Implementing Various Ownership Structures for the IC-DISC
- Privately-held company: C, S, LLC partnership
- Publicly-traded corporation
- Treaty Benefits
- Sourcing Benefits
- Compliance and Reporting By IC-DISCs
- Calculating the amount of commissions
- Complying with the No-Loss Rule
- Completing IRS Form 1120-IC-DISC
- Avoiding and adapting to potential pitfalls of the IC-DISC
Benefits
The panel will guide you through every critical aspect of IC-DISC creation and tax planning, including:
- Maximizing the unique IC-DISC tax benefits.
- Meeting the three requirements to receive income from export property sales.
- Structuring the IC-DISC entity in order to provide liquidity for the parent and shareholders.
- Completing IRS Form 1120-IC-DISC, the unique tax return that applies only to the IC-DISC entity.
Faculty
Robert J. Misey,
Shareholder
Reinhart Boerner Van Deuren, Milwaukee
He is a shareholder in the firm's Tax and Business Law Departments and a co-chair of the International Department. He is the author of "Practical Guide to U.S. Taxation of International Transactions."
Jim Foster,
Director of IC-DISC Department and Senior Tax Controversy Attorney
Paradigm Partners, Houston
He has worked on IC-DISCs and R&D tax credits for corporate clients at Paradigm and at another consulting firm. In his practice, he also works with clients on other specialized tax incentives, energy tax credits, and sales and use tax matters.
Tom Miller,
Partner
BKD LLP, Indianapolis
He has more than 25 years of experience in corporate tax and is a member of the firm's International Tax Services Group, working on export incentives, foreign tax credit planning and related engagements. He previously was VP of tax at Hillenbrand Industries Inc. and worked with a Big Four firm.
Ordering
CPE on Live Event
Continuing Professional Education credit processing is available for an additional $35 per person. You may register for CPE credit processing at any time before or after the program.
Strafford is registered with the National Association of State Boards of Accountancy (NASBA) as a CPE sponsor.
CPE Processing $35.00
Recorded Event
Includes full event recording plus handouts (available after live seminar).
CPE: Self-study CPE is not offered on recorded events.
CLE: Pre-approved for self-study credit in AK, AZ, CA, CT*, MO, MT, NY*, TX, VT, WA. Upon request, self-study credit is also available in: CO, FL, GA, ID, KY, LA, ME, ND, NE, NH, NM, NV, OR, UT, WI, WV, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*For CT and NY, Strafford needs to process the CLE — see below to purchase this option.)
MP3 Download (Audio with Slide PDFs) $247.00
Available 24 hours after the live event
Webinar Download (Slide Presentation with Audio) $247.00
Available three business days after the live event
CD (Audio with Slide PDFs) $247.00
plus $9.45 S&H
Available ten business days after the live event
DVD (Slide Presentation with Audio) $247.00
plus $9.45 S&H
Available ten business days after the live event
CLE Processing on Recorded Event $65.00
CLE on Live Event
Continuing Legal Education credit processing is available for an additional $65 per person per state in states where webinars and teleconferences are accredited.
This webinar is eligible for at least 1.5 general CLE credits, depending on state rules.
You may register for CLE credit processing before or after a program (application deadlines vary by state). Exceptions: Pennsylvania attorneys must pre-register for CLE. Maine and Alabama attorneys please call 1-800-926-7926 ext. 10 for special instructions.
CLE credits are not available for DE, IN, KS, OH, and PR or for NY attorneys admitted within the last 2 years.
CLE Processing $65.00
Webinar/Teleconference
Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program). Please note that our webinars do not feature videos of the presenters.
Program Materials
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Program Materials
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CPE Credit
Strafford's live seminars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.
CLE Credit
Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.
Customer Reviews
Concise and to the point. Moved through the materials in an efficient and logical manner.
Richard L. Hawkins
Geffen Mesher & Co.
Very timely material. Very useful to my practice. Got to ask my questions and received excellent answers.
Joellyn D. Kuhn
Kuhn & Associates
Informative and timely.
Rick Rosell
Bennett Thrasher
Right on point … a great summary of what professionals are required to know.
George R. Paulick
Urish Popeck
Knowledgeable speakers with excellent presentation skills and materials.
Sarah C. Harlan
Sarah C. Harlan, CPA
Accounting Tax Services Advisory Board
Partner
UHY
Partner-In-Charge, Internal Audit & Risk Management
Eisner
Lynford Graham, CPA
Professor of Accounting
Bentley University
Shareholder
Roth & Co. CPAs
Carl Lacher
President
Lacher McDonald & Co.
Curtis Reinhart
Partner
Ernst & Young
Charles “Chip” Schweiger
Audit Services Partner
Grant Thornton