IC-DISC: Mastering Intricacies of the Federal Tax Incentive for Exporters

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

1. Background And Tax Benefits Of IC-DISCs
   1. How the IC-DISC came to be
   2. Tax benefits of IC-DISCs
2. Maximizing Tax Benefits of the IC-DISC
   1. Meeting IRS requirements
   2. Meeting the three tests for “buy-sell” DISCs
3. Implementing Various Ownership Structures for the IC-DISC
   1. Privately-held company: C, S, LLC partnership
   2. Publicly-traded corporation
   3. Treaty Benefits
   4. Sourcing Benefits
4. Compliance and Reporting By IC-DISCs
   1. Calculating the amount of commissions
   2. Complying with the No-Loss Rule
   3. Completing IRS Form 1120-IC-DISC
   4. 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.

Upon completing this course, an attendee will be familiar with all key aspects of the IC-DISC tax incentive, including how to compile the data needed and complete the more complex fields on Form IC-DISC. An attendee also will learn advanced planning strategies for entity formation and tax accounting under the IC-DISC structure, using specific examples of various entity arrangements.

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.

NASBA CPE Sponsor

Strafford is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417 or by visiting www.nasba.org.

CPE Credit

Strafford is a NASBA CPE sponsor and our 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.

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