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An IC-DISC is a legal entity organized as a C corporation that, in most cases, is deemed to act as a sales commission agent for a U.S. manufacturer or distributor that exports U.S.-made products. For an entity to be treated as an IC-DISC for federal income tax purposes, IRS approval is required.
A DISC is a U.S. corporation that has elected DISC status and meets certain other largely symbolic requirements. A corporation so electing is not subject to U.S. Federal income tax. Properly structured, a DISC has no activities other than on paper and no activities not related to the export of qualifying goods.
Shareholders of Interest Charge Domestic International Sales Corporations (IC-DISCs) use Form 8404 to figure and report their interest owed on DISC-related deferred tax liability.
In this type of structure, the C corporation will pay the deductible commission to the IC-DISC, thereby reducing its ordinary income, and the IC-DISC in turn pays that out to its shareholders in the form of a qualified dividend.
Interest-Charge Domestic International Sales. Corporations (IC-DISCs) are domestic corpora- tions formed to export U.S. products.
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This is an information return filed by interest charge domestic international sales corporations (IC-DISCs), former DISCs, and former IC-DISCs.
The IC-DISC pays dividends to its shareholders, which are taxed at a 20% rate. The result yields a 17/9.6% permanent tax rate arbitrage (3.8% net investment income tax may yield different results).
An IC-DISC is a legal entity organized as a C corporation that, in most cases, is deemed to act as a sales commission agent for a U.S. manufacturer or distributor that exports U.S.-made products. For an entity to be treated as an IC-DISC for federal income tax purposes, IRS approval is required.
An IC-DISC is a legal entity organized as a C corporation that, in most cases, is deemed to act as a sales commission agent for a U.S. manufacturer or distributor that exports U.S.-made products. For an entity to be treated as an IC-DISC for federal income tax purposes, IRS approval is required.
Shareholders of Interest Charge Domestic International Sales Corporations (IC-DISCs) use Form 8404 to figure and report their interest owed on DISC-related deferred tax liability.

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