Also published in Windham Brannon:
Tax Planning with Certainty? More Art Than Science.
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How an Interest Charge-Domestic International Sales Corporation Can Benefit U.S. Exporters

Windham Brannon

A business that exports products manufactured, produced or grown in the United States may be able to cut the tax bill on its export profits by one-fourth by taking advantage of an Interest Charge-Domestic International Sales Corporation (IC-DISC). The IC-DISC is essentially a statutorily-created “paper” entity that often takes the form of a commission sales agent for the business exporter.  The IC-DISC, once incorporated, files an election statement with the IRS.  The IC-DISC must be capitalized with a minimum of $2,500, but it does not need to have employees or any other assets.  The administration may be performed mostly ...