News

A related supplier generally may not use the IC-DISC marginal costing method for sales of export property where the purchaser is related within IRC §954(d)(3) and the purchaser’s resale gives rise to foreign base company sales income under IRC §954(d). Treasury Regulation §1.994-2(a) states that the marginal costing rules do not apply in that circumstance, […]

For IC-DISC purposes, a sale through a distributor is not itself the legal test. The real question is whether the property qualifies as export property under IRC § 993(c)(1). That means the property must be manufactured, produced, grown, or extracted in the United States by a person other than the IC-DISC, held primarily for sale […]

In the current global trade landscape, the question of which industries can benefit from an IC-DISC has moved beyond simple manufacturing. As supply chains reshore and U.S. companies become more vertically integrated, the IC-DISC remains a vital tool for any domestic entity adding significant value to products destined for international markets. Whether your firm is […]

In the complex landscape of U.S. tax law, the Interest Charge Domestic International Sales Corporation (IC-DISC) remains the premier export tax incentive for domestic producers and service providers. At its core, an IC-DISC allows companies to convert high-tax ordinary income into qualified dividends, typically resulting in a permanent federal tax savings of 20%. As we […]

In the 2026 global trade environment, the DISC tax structure remains the most resilient and effective federal incentive for U.S.-based exporters. While many tax provisions are subject to “sunset” clauses or legislative volatility, the Interest Charge Domestic International Sales Corporation (IC-DISC) provides a consistent, statutory framework for permanent tax arbitrage. By strategically shifting a portion […]

According to the National Association of Manufacturers, exports support over 12 million jobs in the U.S. alone. Yet many exporters are still missing out on one of the most powerful, and legal, federal tax incentives available: the Interest Charge Domestic International Sales Corporation, or IC-DISC. An IC-DISC tax strategy allows qualifying U.S. exporters to convert […]

For U.S. exporters, the Interest Charge Domestic International Sales Corporation (IC-DISC) remains a powerful but often underutilized tax savings tool. Originally enacted by Congress in 1971, it stands as the last significant federal incentive designed specifically to bolster businesses selling goods or services globally. This 2026 practical guide is designed to help you navigate the […]

One overlooked calculation error can wipe out your export tax savings. For U.S. exporters leveraging the Interest Charge Domestic International Sales Corporation structure, the federal tax savings are substantial—but in 2026, the compliance risks have never been higher. The IC-DISC no loss rule is a compliance mandate ensuring that an IC-DISC commission does not create […]

For U.S. exporters looking to sharpen their competitive edge in 2026, the Interest Charge Domestic International Sales Corporation (IC-DISC) remains one of the most potent tax incentives available. However, the “magic” of the IC-DISC doesn’t happen automatically, it is driven by the precise application of IC-DISC commission payment provisions. Navigating these rules requires more than […]

The 1120-IC-DISC Schedule K is a mandatory component of Form 1120-IC-DISC, the annual federal tax return used by Interest Charge Domestic International Sales Corporations to report export-related income and shareholder distributions. For companies preparing their 2025 tax returns in 2026, Schedule K is the definitive record of how profits are allocated—whether through actual payments, deemed […]