IC-DISC Strategies: Mastering the Complex Operational Challenges

Anticipating IRS Audit Risks, Calculating Commissions, and Tackling Computational Intricacies

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A


Tuesday, November 10, 2020

1:00pm-2:50pm EST, 10:00am-11:50am PST

or call 1-800-926-7926

This webinar will prepare accounting professionals and tax advisers to fully leverage the tax benefits of IC-DISC formation. The panel will review and explain the key strategic steps for day-to-day aspects of running an IC-DISC, including calculating commissions, spotting IRS audit risks, and tackling the complex computations required. The panel will also outline key IC-DISC tax planning opportunities, including using the best DISC ownership structures to maximize DISC benefits.

Description

The tax savings available for exporters through an IC-DISC (interest charge-domestic international sales corporation) remain a significant incentive for businesses and their owners. Accounting professionals and corporate tax specialists have to prepare for the tough tax and accounting challenges that come into play after implementing IC-DISCs.

Tax planning involving an IC-DISC requires more intensive review with the current qualified business income deduction (QBID) for pass-through entities and the Section 250 deduction for FDII available to C corporations. These new demands add to higher level compliance challenges for advisers to businesses.

Perspectives from advisers with years of experience in IC-DISC structures will help you deal with its most vexing tax challenges, including strategies for handling critical day-to-day operational aspects, calculating commissions, anticipating IRS audit risk areas, improving liquidity for the parent and shareholders, and identifying optimal approaches to complicated computational problems.

Listen as our panel of veteran advisers takes you beyond the basic understanding of how IC-DISCs operate and prepares you to tackle the more advanced issues and challenges.

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Outline

  1. IC-DISC overview
    1. Applicable IRC sections
    2. Tax court decisions and IRS guidance
    3. Implementing an IC-DISC
    4. IC-DISCs future
  2. Updated IC-DISC ownership structures
    1. Structuring and implementing IC-DISCs
    2. Day-to-day operating issues
    3. IRA ownership of IC-DISCs
    4. Saving Disqualified IC-DISCs
  3. Compliance and reporting
    1. Pricing rules
    2. Computational challenges
      1. Calculating commissions
      2. Transaction-by-transaction computations
      3. Reg 1.861-8 computations
      4. Other issues
    3. Considerations after the 2017 Tax Act
    4. Tax filings and common compliance pitfalls

Benefits

The panel will guide you through issues including:

  • Maximizing unique IC-DISC tax benefits such as the tax benefits from different shareholder structures
  • Understanding tax liability for DISC structures and the QBID
  • Managing day-to-day operational aspects of using an IC-DISC
  • Improving liquidity for the parent and shareholders: steps to consider
  • Overcoming computational challenges

Faculty

Gasbarra, Mark
Mark C. Gasbarra, CPA

National Managing Director
Forte International Tax

Mr. Gasbarra has more than thirty-five years of international tax experience serving a wide array of companies across...  |  Read More

Janiczek, Randall
Randall Janiczek, CPA

Partner
Plante & Moran

Mr. Janiczek is a Member of the firm’s International Tax Services Group. He has extensive experience working...  |  Read More

Misey, Robert
Robert J. (Rob) Misey, Jr.

Shareholder
Reinhart Boerner Van Deuren

Mr. Misey, Jr. is chair of the firm’s International Practice. He serves with a wide range of clients involved in...  |  Read More

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