IC-DISC Tax Law Challenges: Structuring and Planning Techniques to Maximize Federal Tax Savings

Navigating Applicable IRC Sections, Formation and Qualification Issues, and Capturing Maximum Tax Benefits

Recording of a 90-minute CLE/CPE webinar with Q&A


Conducted on Tuesday, May 17, 2016

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE/CPE webinar will provide tax counsel and advisers with the guidance necessary to maximize the powerful tax benefits of the interest-charge domestic international sales corporation (IC-DISC). The panel will review the complex requirements of applicable IRC sections, formation best practices and qualification issues.

Description

Recent U.S. tax law makes the IC-DISC structure beneficial for companies that export products. If formed properly, corporations can benefit from as much as 16% in federal income tax savings. For example, there is a reduced tax rate for qualified dividends.

One of the more complicated areas consists of reconciling the difference in application of the benefits of an IC-DISC structure to S corporations or partnerships versus C corporations. Failure to comply with specific IRC formation requirements can cost the client many IC-DISC benefits.

Only about 25% of the available benefits of the IC-DISC structure are being captured thus far, and tax advisers and counsel can leverage this tax savings opportunity for clients now. Perfecting your knowledge of these IRC sections and implementing this structure for export business clients is the first step.

Listen as our experienced panel reviews structuring techniques to maximize the federal tax savings for domestic corporations that primarily engage in foreign sales and exporting activity. The panelists will focus on the IRC sections, formation, benefits and qualification issues.

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Outline

  1. Applicable IRC sections
  2. Formation
    1. Drafting the contract between IC-DISC and manufacturing company
    2. Appropriate legal entity
    3. Implementation
  3. Partnerships/S corporations versus C corporations
  4. Qualification issues
    1. Qualified export receipts
    2. Qualified export assets
    3. Dividends
  5. Best practices for capturing the maximum tax benefit

Benefits

The panel will review these and other key issues:

  • What benefits does the IC-DISC structure provide to export companies?
  • What are the best practices that should be implemented in forming the IC-DISC structure to maximize tax benefits?
  • What considerations must be made when utilizing the IC-DISC structure as it applies to S corporations and partnerships versus C corporations?
  • What qualification issues must be considered?

Faculty

George, Greg
Greg George
Partner, International Tax
Grant Thornton

Mr. George is a Partner in the firm’s International Tax Practice and serves as Lead Partner for the Pacific...  |  Read More

Ghassemieh, Mehrdad
Mehrdad Ghassemieh

Partner
Harlowe & Falk

Mr. Ghassemieh's practice focuses on assisting companies of all sizes, in all business and tax matters,...  |  Read More

Lehman, Richard
Richard S. Lehman

Atty
United States Taxation and Immigration Law

Mr. Lehman's tax law practice focuses on an array of commercial transactions involving an international and...  |  Read More

Other Formats
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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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