Tax Strategies for Exporters: The IC-DISC Workshop

December 11: Birmingham Business Alliance  11:45AM – 2:15PM
December 18: Mobile Chamber  11AM – 1:30PM

Participants may download a copy of the IC-DISC presentation slides and a copy of the XLS worksheet / template.

The Alabama International Trade Center, is pleased to sponsor an important educational workshop on the prolific tax benefits offered to exporters under the Internal Revenue Code’s Interest Charge Domestic International Sales Corporation (IC-DISC) provisions. Exporting companies (C Corps & especially LLCs and S Corps) for many years have been allowed to establish an IC-DISC to in effect cut their tax rate on exports by at least 10 percentage points. Yet these export tax incentives provided in the tax law have often been overlooked by many qualified companies.

An IC-DISC can provide this significant tax benefit on every qualified export transaction but only if a qualified IC-DISC has been established prior to its completion. So, as 2013 draws to a close, and in order to derive the full benefit from an IC-DISC beginning with the New Year, now is the time to take a closer look at the attractive incentives available under the IC-DISC election–

  • Option 1:  Pay IC-DISC a commission and distribute DISC dividends of export earning, taxed at the much lower qualified dividend rate—generally approximately one-half or less than the  owners’ effective tax rate in the absence of the IC-DISC—i.e., a permanent tax savings.
  • Option 2:  Defer federal income tax altogether on export-related earnings (pay only a currently    very low interest charge on the deferred tax.

The presenters for this workshop will be Edward K. Dwyer, CPA and his associate Alex McGowin, M.S.-Tax. Ed has many years experience in international taxation and has worked with many export clients (and their CPAs) regarding the IC-DISC and other export tax incentives. Alex recently began employment with Ed following a period of international tax services employment in Houston with a Big 4 accounting firm. He is also actively involved in IC-DISC implementation and compliance services.

The IC-DISC workshop has not been offered in the State of Alabama for quite some time. Now is your chance to learn about this valuable, money saving tax incentive vehicle. In order to derive maximize benefits from the IC-DISC provisions, now, just before a new year begins is the time to freshen up your knowledge on this program and to set in motion the process to have the IC DISC in place to start 2014!

If you are interested in exploring the viability of an IC-DISC, or need assistance in establishing one, please call 800-747-2482.