BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Thursday, November 30, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course will prepare accounting professionals and tax advisers to fully leverage the tax benefits of IC-DISC (interest charge-domestic international sales corporation) formation. The panel will review and explain the key strategic steps for day-to-day aspects of running an IC-DISC, including calculating commissions, spotting IRS audit risks, and tackling the complex computations required. The panel will outline critical IC-DISC tax planning opportunities, including using the best DISC ownership structures to maximize DISC benefits.

Faculty

Douglas Fox
Senior Manager
Plante Moran

Mr. Fox's specialties include research and development credits, domestic production activities deductions, IC-DISC, qualified business income feductions.

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Mark C. Gasbarra
National Managing Director
Forte International Tax, LLC

Mr. Gasbarra has more than thirty-five years of international tax experience serving a wide array of companies across many industries. He serves major multinational corporations and CPA firms throughout the U.S., as well as privately held businesses with international operations. He advises on a wide range of international tax matters with deep expertise in outbound issues including repatriation, foreign tax credit utilization, export incentives, including the IC-DISC, and the domestic production activities deduction. Prior to founding Forte in 2004, he was the lead partner in EY's Chicago-based International Tax Services department, and prior to that position, he was an International Tax Service Partner at PwC.

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Description

The tax savings available for exporters through an IC-DISC remain a significant incentive for businesses and their owners. Accounting professionals and corporate tax specialists must prepare for the burdensome tax and accounting challenges that come into play after implementing IC-DISCs.

Tax planning involving an IC-DISC requires more intensive review with the currently qualified business income deduction (QBID) for pass-through entities and the Section 250 deduction for FDII available to C corporations. These new demands add to higher-level compliance challenges for advisers to businesses.

Perspectives from advisers with years of experience in IC-DISC structures will help you deal with its most vexing tax challenges, including strategies for handling critical day-to-day operational aspects, calculating commissions, anticipating IRS audit risk areas, improving liquidity for the parent and shareholders, and identifying optimal approaches to complicated computational problems.

Listen as our panel of veteran advisers takes you beyond the basic understanding of how IC-DISCs operate and prepares you to tackle the more advanced issues and challenges.

Outline

  1. IC-DISC overview
    • Applicable IRC sections
    • Tax court decisions and IRS guidance
    • Implementing an IC-DISC
    • IC-DISCs future
  2. Updated IC-DISC ownership structures
    • Structuring and implementing IC-DISCs
    • Day-to-day operating issues
    • IRA ownership of IC-DISCs
    • Saving disqualified IC-DISCs
  3. Compliance and reporting
    • Pricing rules
    • Computational challenges
      • Calculating commissions
      • Transaction-by-transaction computations
      • Reg 1.861-8 computations
      • Other issues
    • Tax filings and common compliance pitfalls

Benefits

The panel will guide you through issues including:

  • Maximizing unique IC-DISC tax benefits such as the tax benefits from different shareholder structures
  • Understanding tax liability for DISC structures and the QBID
  • Managing day-to-day operational aspects of using an IC-DISC
  • Improving liquidity for the parent and shareholders: steps to consider
  • Overcoming computational challenges

NASBA Details

Learning Objectives

Upon completing this seminar, you will be able to:

  • Identify day-to-day operational challenges of using an IC-DISC
  • Decide on strategies to save disqualified IC-DISC structures
  • Establish the federal tax rules pertaining to IC-DISCs
  • Recognize the importance and method of calculating combined taxable income
  • Ascertain the various tax benefits that a DISC provides to its related supplier and shareholders

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of manufacturing and distribution operations; familiarity with export regulations, including tests for determining export property; familiarity with cost allocation principles.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).