In the complex landscape of the U.S. tax code, few incentives remain as potent for domestic manufacturers and distributors as the Interest Charge Domestic International Sales Corporation (IC-DISC). As the last remaining federal export tax incentive, the IC-DISC provides a significant permanent tax savings opportunity for companies selling products abroad. While various entity types can […]
This is a 2-hour live video conference (2 CPE credits) led by Paul E. Ferreira, CPA who manages over 90 IC-DISCs and has been a tax practitioner for over 25 years. Zoom Live Video Conference: June 10th, 12pm-2pm ET Sign Up Here Because one of our objectives is to replicate the live in-person interactive seminar […]
For many U.S. exporters, the Interest Charge Domestic International Sales Corporation (IC-DISC) is a cornerstone of their federal tax strategy. By converting high-rate ordinary income into tax-advantaged qualified dividends, the IC-DISC provides immediate permanent tax savings on export profits. However, as business owners scale their global operations, a common challenge arises: the “liquidity trap.” While […]
The IC-DISC commission calculation has taken on renewed importance as several key provisions of the Tax Cuts and Jobs Act (TCJA) are scheduled to sunset in the coming years. Chief among them is Section 199A, which currently allows many pass-through exporters to deduct up to 20% of qualified business income. If Congress allows this provision […]
Exporting goods or services from the United States doesn’t just open the door to global markets; it also unlocks powerful tax-saving opportunities. In 2026, U.S.-based exporters can still take advantage of key federal incentives like the Interest Charge Domestic International Sales Corporation (IC-DISC) and the Foreign-Derived Intangible Income (FDII) deduction to reduce their tax liabilities […]
The Interest Charge Domestic International Sales Corporation (IC-DISC) is one of the most powerful tax incentives available to U.S. exporters, but only when it’s implemented and maintained correctly. Despite its benefits, many businesses unknowingly make costly mistakes in setup, compliance, reporting, or commission calculation, which can lead to disqualification, lost tax savings, or worse, IRS […]
The Interest Charge Domestic International Sales Corporation (IC-DISC) regime offers significant tax benefits for U.S. exporters, but it comes with strict compliance requirements. Questions often arise about how a related supplier can satisfy commissions paid to an IC-DISC, especially using offsetting accounting entries. Treas. Reg. §1.994-1(e)(3)(ii) provides important guidance on this topic, allowing for flexibility […]
The Interest Charge Domestic International Sales Corporation (IC-DISC) regime remains a powerful tool for U.S. exporters, offering significant tax benefits by allowing a portion of export income to be taxed at favorable rates. A critical component of the IC-DISC calculation is the treatment of “export promotion expenses,” which can increase the amount of income allocated […]
Not Prejudicing the Interests of the Government under Treas. Reg. § 301.9100-3 Regarding a late-filed IC-DISC Election (Form 4876-A) In the context of Treas. Reg. § 301.9100-3, when the IRS considers granting an extension of time to make a regulatory election (such as filing Form 4876-A to elect IC-DISC status), a key requirement is that […]
For U.S. businesses involved in exporting, the Interest Charge Domestic International Sales Corporation (IC-DISC) offers a valuable tax-saving opportunity. As the last remaining federal income tax incentive for U.S. exporters, IC-DISC allows eligible companies to significantly reduce their tax burden. In this article, we’ll walk through a detailed IC-DISC example, illustrating how it works in […]
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