IC-DISC Tax Law Challenges: Structuring and Planning Techniques to Maximize Federal Tax Savings
A live 90-minute CLE/CPE webinar with interactive Q&A presented by Stafford
Tuesday, May 17, 2016 (Tomorrow)
1:00 pm-2:30 pm EDT, 10:00am-11:30am PDT
This webinar is eligible for at least 1.5 general CLE credits.
Presentation Description
Recent U.S. tax law makes the IC-DISC structure beneficial for companies that export products. If formed properly, corporations can benefit from as much as 16% in federal income tax savings. For example, there is a reduced tax rate for qualified dividends.
One of the more complicated areas consists of reconciling the difference in application of the benefits of an IC-DISC structure to S corporations or partnerships versus C corporations. Failure to comply with specific IRC formation requirements can cost the client many IC-DISC benefits.
Only about 25% of the available benefits of the IC-DISC structure are being captured thus far, and tax advisers and counsel can leverage this tax savings opportunity for clients now. Perfecting your knowledge of these IRC sections and implementing this structure for export business clients is the first step.
Listen as our experienced panel reviews structuring techniques to maximize the federal tax savings for domestic corporations that primarily engage in foreign sales and exporting activity. The panelists will focus on the IRC sections, formation, benefits and qualification issues.
Learning Objectives
Upon completion of this program, you will understand structuring techniques that maximize federal tax savings for domestic corporations that primarily engage in foreign sales and exporting activity. You will learn the tax benefits of the IC-DISC structure for export companies, best practices for forming an IC-DISC structure to maximize tax benefits, the necessary considerations when utilizing the IC-DISC structure for S corporations and partnerships versus C corporations, and the qualification issues that must be considered.
Faculty
Mehrdad Ghassemieh, Partner
Harlowe & Falk, Tacoma, Wash.
Mr. Ghassemieh’s practice focuses on assisting companies of all sizes, in all business and tax matters, including advising closely held businesses to establish new business entities, advising on regulatory and tax matters, succession planning, and tax efficient planning for purchases or sales of existing businesses. He also provides tax consulting services to clients with international operations. His clients include both U.S.–based companies that have expanded abroad and foreign companies with U.S. ties. He also consults with U.S.–based exporting companies to determine whether they qualify for IC–DISC tax incentive benefits, and assists in both implementation and maintenance of IC–DISC structures.
Richard S. Lehman, Atty
United States Taxation and Immigration Law, Boca Raton, Fla.
Mr. Lehman’s tax law practice focuses on an array of commercial transactions involving an international and domestic client base. He previously served as Senior Attorney, Interpretative Division, Chief Counsel’s Office, Internal Revenue Service, Washington D.C. He authored articles on taxation and was editor and contributing author of A Guide to Florida International Business and Investment Opportunities.
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Strafford is an IRS approved continuing education provider.
Richard S. Lehman will discuss the Export Disc Corporation and computer software and internet sales and licenses.
The IC-DISC has been approved as an acceptable tax planning entity for the export of American produced computer software and programs as early as 1985. In 1998, a very detailed set of Treasury Regulations were issued that have added certainty to this area of the law.
