IC-DISC Strategies Update: Commissions, Complex Computations, IRS Audit Risks, Tax Savings Tactics

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


Thursday, October 5, 2017 (in 13 days)
1:00pm-2:50pm EDT, 10:00am-11:50am PDT


This webinar will provide an updated guide to accounting professionals, tax advisers, and DISC administrators on the tax benefits and operational requirements of an Interest Charge-Domestic International Sales Corporation (IC-DISC). The panel will review and explain the key strategic steps for establishing and running an IC-DISC, including calculating commissions, spotting IRS audit risks, and tackling the complex computations required. The panel will also address recent IC-DISC developments and outline key IC-DISC tax planning opportunities, including using the optimal DISC ownership structure to maximize DISC benefits.

Description

The IC-DISC remains the most significant U.S. income tax break for export business owners. The majority of IC-DISC companies are pass-through entities, either S corporations or LLCs. However, the benefits of the IC-DISC structure continue to be underutilized. Tax advisers must be well-versed in the tax, accounting and operational requirements after implementing IC-DISCs.

Establishing and operating an IC-DISC requires comprehensive tax planning to ensure that the DISC is meeting the IRS tests for determining qualified export assets and receipts and for ensuring distribution and interest amounts are accurately calculated. DISCs can achieve optimal tax benefits by utilizing available safe harbor pricing methods. Advisers must also grasp the impact of the DISC’s ownership and entity structure in claiming tax benefits.

Listen as our panel of expert advisers, drawing from years of experience in IC-DISC structures, helps you deal with its tax challenges, including calculating commissions, anticipating IRS audit risk areas, improving liquidity for the parent and shareholders, and identifying optimal approaches to the computational requirements. The program will provide tools to help ease the integration of DISC structures into current financial reporting systems.

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. Treaty country ownership of DISC
    5. Related party DISC partnerships
    6. Enhanced tax deferral opportunities
    7. 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. Challenges related to the dividend tax increase and 3.8% Medicare tax
    4. Tax filings and common compliance pitfalls

Benefits

The panel will guide you through issues, including:

  • Maximizing unique IC-DISC tax benefits, including the tax benefits from different shareholder structures
  • Understanding tax liability for IC-DISC structures under the new federal dividend tax rate and Medicare tax
  • Improving liquidity for the parent and shareholders—steps to consider
  • Overcoming computational challenges

Learning Objectives

After completing this course, you will be able to:

  • Identify day-to-day operational challenges of using an IC-DISC
  • Decide on strategies to save disqualified IC-DISC structures
  • Establish the federal tax rules pertaining to IC-DISCs
  • Recognize the importance and method of calculating combined taxable income
  • Ascertain the various tax benefits that a DISC provides to its related supplier and shareholders

Faculty

Mark C. Gasbarra, CPA, National Managing Director
Forte International Tax, Evanston, Ill.

Mr. Gasbarra has more than thirty-five years of international tax experience serving a wide array of companies across many industries. He serves major multinational corporations and CPA firms throughout the U.S., as well as privately held businesses with international operations. He advises on a wide range of international tax matters with deep expertise in outbound issues including repatriation, foreign tax credit utilization, export incentives, including the IC-DISC, and the domestic production activities deduction. Prior to founding Forte in 2004, he was the lead partner in EY's Chicago-based International Tax Services department, and prior to that position, he was an International Tax Service Partner at PwC.

Neal J. Block, Senior Counsel
Baker & McKenzie, Chicago

Mr. Block has represented U.S. and international corporate clients on domestic and international tax matters for more than 40 years. He is a leading practitioner in the IC-DISC area, both for tax planning and litigation. He previously chaired the Chicago Bar Association's Committee on Taxation.


Registration per Person for Live Event

Live Webinar $247.00

Live Webinar & CPE Processing $282.00


CPE per Person on Live Event

Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of manufacturing and distribution operations; familiarity with export regulations, including tests for determining export property; familiarity with cost allocation principles.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recordings

Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $247.00
Available 48 hours after the live event

How does this work?

Recorded Audio Download (MP3) $247.00
Available 24 hours after the live event

How does this work?

DVD (Slide Presentation with Audio) $247.00 plus $9.45 S&H
Available ten business days after the live event

How does this work?


Registration Plus Recorded Event

Best value!

Live Webinar & Webinar Download $344.00

Recorded Webinar Download Only $97.00 with Registration/Webinar Combo

Live Webinar & Audio Download $344.00

Recorded Audio Download (MP3) Only $97.00 with Registration/MP3 Combo

Live Webinar & DVD $344.00 plus $9.45 S&H

DVD (Slide Presentation with Audio) Only $97.00 with Registration/DVD Combo


NASBA CPE Sponsor

National Registry of CPE Sponsors

Strafford Publications, Inc. 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 submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

or call 1-800-926-7926

Can't Attend the Live Program?

CPE Credit

Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.

or call 1-800-926-7926

EA Credit

Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.

or call 1-800-926-7926

Customer Reviews

I thought that the speakers were very knowledgeable and their presentation materials will be good reference guides.

Claudia Del Castillo, CPA

Sol Schwartz & Associates

The webinar was fast paced and comprehensive.

Lorraine Round

SAP

Provided a lot of information. Examples made it easier to put in everyday perspective.

Therese Au

Forsythe Technology

Real life examples that we could relate to.  Keep up the great work.

Brett Terrebonne

Entergy

I found the presenters to be very experienced and the Q&A's to be particularly useful.

Mike O'Brien

American Eagle Outfitters

or call 1-800-926-7926

Corporate Tax Advisory Board

David Adler

Director of Multistate Tax Services

Deloitte Tax

Silvia Aguirre

Chief Certificate Officer

Avalara

David Bowen

Principal

Grant Thornton

Elizabeth Bowman

Tax Research Analyst

ADP Tax Credit Services

Rick Bregitzer

Manager of Domestic Taxes

Parker–Hannifin

Joseph Calianno

Partner, National Tax Office International Tax

BDO

Patrick Derdenger

Tax Partner

Steptoe & Johnson

Martin Eisenstein

Managing Partner

Brann & Isaacson

John Garippa

Senior Partner

Garippa Lotz & Giannuario

Joseph Geiger, Esq., CPA

Tax Consultant

Vertex

Kenneth Graeber

VP & Management Consultant

Marvin F. Poer & Co.

Don Griswold

Executive Tax Counsel

Berkshire Hathaway Tax Group

Stephanie Anne Lipinski-Galland

Partner

Williams Mullen

George Manousos

Partner

PricewaterhouseCoopers

Diane Matulich

Senior Manager, Local Taxes

Advanced Micro Devices

Betty McIntosh

Senior Managing Director

Cushman & Wakefield

Foy Mitchell

Vice President

Marvin F. Poer & Co.

Richard Pomp

Professor of Tax Law

University of Connecticut

Walter Pickhardt

Partner

Faegre Baker Daniels

Richard J. Prem

Vice President, Indirect Taxes & Tax Reporting

Amazon.com

Michael Press

President

Scout Economics

Tammy Propst

President

taxadvantagegroup

Mark Semerad

Manager of Property Tax

Level 3 Communications

Richard Weiss

Tax Research Manager

ADP Tax Credit Services

Tom Windram

Managing Director & National Leader, Federal Tax Credits & Incentives

RSM McGladrey

Thomas Zaino

Managing Member

Zaino Hall & Farrin

or call 1-800-926-7926

Our Guarantee

Strafford webinars are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.