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Maximise

IC-DISC

Don’t let taxes eat your export profits.

Congress created a tax break for exporters, and we make sure you get every dollar you’re owed. Maximize your cash flow and fund your next move.

IC-DISC: The Last Remaining Export Incentive

Encouraging exports is a key pillar of our nation’s economic policy. Congress has designed a tax benefit to incentivize and reward those very activities by reducing tax liability and providing an increased cash flow for businesses to reinvest in future global commercial activities.

The Interest Charge–Domestic International Sales Corporation (IC-DISC) is the only export incentive available to U.S. businesses and their shareholders.

Businesses are excellent candidates for the IC-DISC if they are:

  • U.S. companies that directly export their products
  • U.S. companies that sell products destined for use overseas
  • Pass-through entities and privately held corporations

Businesses don’t need to manufacture exported products themselves – as long as a substantial portion of the manufacturing is done in the U.S., the products can qualify for this benefit.

STUDY PROCESS

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Incorporation:

We will assist you in the creation and maintenance of your IC-DISC entity in order to begin the process of claiming benefit.

Qualification:

We will request and review your export sales data and financial statements to determine what sales qualify and begin calculating your commission estimate.

Commission Estimate:

We will provide a commission estimate at the beginning of the year detailing qualified export sales and what commission amount to pay into the IC-DISC entity.

Finalization:

Lastly, we will complete a tax adjustment based on the exporters tax return and provide additional forms needed to file the 1120-IC-DISC return.

How Does an IC-DISC Work?

An IC-DISC is a separate corporation held by the exporter that files an 1120 IC-DISC tax return and generates benefit via commission payments.
Commissions, which are calculated based on export sales and profits, are paid to the IC-DISC and then distributed back as qualified dividends.
Several calculation methodologies are available to calculate commissions and generate the most benefit for the taxpayer.

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