The IC-DISC is the last remaining export incentive for privately held companies based in the USA. An IC-DISC allows a company the opportunity to convert ordinary income into capital gains, allowing these profits to be taxed at a much lower rate. If the USA company has a foreign parent, the tax savings from utilizing this mechanism can be substantial.
The IC-DISC practice of ABGi is comprised of professionals with decades of experience with the complicated computations. Using transaction by transaction analysis, and product groupings, every client’s valuable IC-DISC benefits are fully optimized.
If a company has foreign ownership, the implementation of an IC-DISC within the corporate hierarchy, is the perfect alternative to expensive and exotic schemes designed to strip out US earnings that have consistently drawn scrutiny from the IRS.
Looking back to the open years is a simple process. Gathering the data and redetermining the commission expense could result in a significant cash benefit to the shareholders. Our team works closely with the incumbent service providers to assist with amending all the required returns, and accurately reflecting the revised commissions, dividends, or producer loans on these returns.