Enacted in 1984 as a deferral mechanism for small exporters, today’s Interest-Charge DISC gives exporters a permanent tax savings resulting from a reduction in the tax rate on qualified dividends.
Our professionals have experience leading the export incentives practices at the largest global accounting firms and we provide comprehensive IC-DISC services from entity creation through maximization of available tax savings.
Maximizing Tax Savings
Maximizing tax savings involve three distinct aspects:
- Identifying all qualified export gross receipts;
- Expense Apportionment Methodology (861-8); and
- Transaction-by-transaction analysis.
Our professionals employ powerful tools to maximize the tax savings available under the administrative pricing rules designed by the U.S. Congress—including transactional analysis. The firm delivers a complete and detailed audit trail from the client’s books and records
through the preparation of IRS Form 1120 IC-DISC.
We handle all aspects of forming and managing the IC-DISC, from inception through optimization of tax savings, including:
- Assistance in choosing an optimal holding structure;
- Organizing a corporation;
- Providing board resolutions and DISC export agreements to document the DISC activities; and
- Annual Management and Accounting Services.
Our professionals assist clients in using these and other planning solutions to best meet their tax needs.