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

Overcoming Compliance Challenges to Maximize Tax Benefits

Recording of a 110-minute CPE/CLE webinar with Q&A


Conducted on Wednesday, March 10, 2010

Recorded event now available

or call 1-800-926-7926
Program Materials

This 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.

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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.

Faculty

Robert J. Misey
Robert J. Misey

Shareholder
Reinhart Boerner Van Deuren

He is a shareholder in the firm's Tax and Business Law Departments and a co-chair of the International Department....  |  Read More

Jim Foster
Jim Foster
Director of IC-DISC Department and Senior Tax Controversy Attorney
Paradigm Partners

He has worked on IC-DISCs and R&D tax credits for corporate clients at Paradigm and at another consulting firm. In...  |  Read More

Tom Miller
Tom Miller

Partner
BKD

He has more than 30 years of experience in corporate tax and is a member of the firm's International Tax...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include program handouts.

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