Export DISC, tax deferral, incentive
Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive

Accounting Today
Voices: 10 winning IC-DISC tax strategies

By Robert Feinschreiber Margaret Kent
Published: June 08 2017, 3:11pm EDT

Our DISC Experience Can Give You Ten Crucial Hot-Button Opportunities
  • Tax Audits – Uncle Sam might be at your doorstop. The IRS has been training its international examiners. Will your DISC withstand IRS audits?

  • Franchise agreements - Does Your DISC franchise agreement meet IRS standards? How can you be sure you can select between 4 percent rule and the 50/50 pricing rule?

  • Tax benefits for manufacturers – How can manufacturers benefit from DISC without active international distribution if their sales go overseas?

  • The 60-day rule - Has your DISC complied with the 60-day rule? Are there alternatives to total DISC disqualification?

  • Export promotion expenses – How can you benefit from having export promotion expenses? What should your EPE agreement say?

  • DISC ownership – What is the best way to structure DISC ownership now? How can you avoid gift tax hurdles?

  • Obtaining Pure DISC income – How can you can obtain DISC benefits beyond than $10 million limitation

  • Grouping or ungrouping DISC sales – How can you benefit from the selective use of the transaction by transaction method?

  • Tax benefits for international distributors – How can international distributors benefit from DISC even without manufacturing on their own in the United States?

  • Tax rates - How can your DISC take advantage of the Bush/Obama tax rate spread for exports?

Exporters - Select between 20% distribution tax savings and the long-term tax deferral.

Export DISCs are America's only tax incentive for export.

Are you prepared to claim these benefits?

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Introduction to DISC Export Benefits

What we can do in claiming your Export DISC benefits:
  • Contact us to ascertain your company's eligible Export DISC activities
  • Contact us to help find Export DISC activities you've missed
  • Contact us to provide agent examination response
  • Contact us to provide a protest to the IRS audit
  • Contact us to handle appellate negotiations
  • Contact us to provide legal briefs
  • Contact us to find a way out of the legal morass
  • Contact us to provide in-house training

DISC Benefits. Congress repealed the Extraterritorial income provisions, leaving interest charge DISCs as America's only viable tax break. ExportDISCs give exporters a long-term tax deferral, potentially delaying the payment of these taxes – with a modest amount of interest - for many years to come. There could very well be an ExportDISC in your future!

DISC Formation and Organization. Should your ExportDISC be subsidiary of the parent company, or should your ExportDISC be a brother-sister corporation? What are the pitfalls in making the DISC election? Should your ExportDISC be a buy-sell enterprise, a commission enterprise, or something else? What estate planning structures for your DISC should you consider for your shareholders?

DISC Gross Receipts. How can you best comply with the 95 percent gross receipts test? What sales and rental opportunities should your ExportDISC undertake? Why maximizing gross receipts might not be your best alternative? Should your ExportDISC claim related and subsidiary service activities? What about embedded services and Internet services? Is passive income the right gross receipts opportunity for your export business?

DISC Export Assets. How can you best comply with the 95 percent assets test, as your ExportDISC's assets grow? Are producer's loans the best for your ExportDISC? Wouldn't a FISC work best instead?  What about using your receivables as an asset? Would you consider Related Foreign Export corporations? How can you build up eligible export assets as the company's tax deferral also grows? 

DISC Pricing and Profits. How can you best select from the 4 percent gross receipts method and the 50/50 net profit method? When should you apply the transaction-by-transaction or grouping methods? When can having loss sales increase DISC profits? Why a FISC can increase DISC benefits? When does marginal costing work? When should you claim export promotion benefits?

DISC Distributions. How can you best use DISC distributions to make the most of the tax deferral? What do you need to know about accumulated DISC income, and the benefits your company will have by making accumulated DISC income grow?  What should you be doing with your previously taxed income? What do you need to know about deficiency distributions?

Related Material. FSCs, extraterritorial income, transfer pricing, and more.  

Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive Export DISC, tax deferral, incentive

ExportDISC Management Company
pursuant to Section 993(a)(1)(H) and Section 993(b)(2)
1121 Crandon Blvd. F301
Key Biscayne, FL 33149
Primary Phone: 305.361.5800