Contact UsI serve as the CPA for a closely held domestic C Corporation that earns a significant amount of income from exporting U.S. made products. Hence, I am considering advising on forming an IC-DISC structure for this client. Are the IC-DISC tax benefits retroactive?
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Tax Professional Answers
Peter Scalise, SAX LLP
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534 weeks ago
I agree with you that an Interest Charge Domestic International Sales Corporation (hereinafter “IC-DISC”) could be an advantageous structure for your client. However, in order to make the most of this strategy, the IC-DISC should be
established as soon as possible because the tax benefits can only be claimed on
export sales after the formation of the IC-DISC as these tax benefits are not
retroactive.
An IC-DISC is relatively inexpensive to set up and operate, and it can reduce your federal tax rate on a portion of net export income by as much as 20 percent.
Please contact me directly for further assistance and I look forward to collaborating with you.