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IC-DISC Tax Services for U.S. Exporters
An Interest Charge Domestic International Sales Corporation (IC-DISC) is a tax incentive designed to help U.S. exporters reduce their tax liability and increase cash flow. By using an IC-DISC, eligible businesses can convert a portion of their export income into qualified dividends, taxed at lower rates, resulting in significant tax savings each year.

At Transglobal Tax Solutions, we help businesses maximize these benefits while ensuring full compliance with IRS regulations. Whether you’re considering an IC-DISC for the first time or looking to optimize an existing structure, we provide expert guidance every step of the way.

How IC-DISC Benefits Your Business
✔ Lower Taxes – Reduce the tax rate on export profits by converting them into qualified dividends.


✔ Improve Cash Flow – Free up more capital for reinvestment or shareholder distributions.


✔ Remain Competitive – Keep more of your earnings while growing your business internationally.

Who Can Benefit from IC-DISC?
IC-DISC is available to U.S. businesses engaged in exporting goods or services, including:


✔  Manufacturers – Producing U.S.-made products for international markets.


✔  Wholesalers/Distributors/Retailers – Selling domestically produced goods to foreign customers.


✔ Engineering & Architectural Firms – Working on projects outside the U.S.


✔ Agricultural Farmers & Processors – Selling U.S.-grown products overseas.

Any U.S. taxpayer involved in these supply chain activities may qualify for IC-DISC benefits—even if they are not the actual exporter of the U.S. products. This includes businesses that manufacture components, supply raw materials, or provide services that support export sales.

Comprehensive IC-DISC Services
At Transglobal Tax Solutions, we provide a full suite of IC-DISC tax planning, implementation, and compliance services to ensure your business maximizes tax savings while staying fully compliant with IRS regulations.

1. IC-DISC Formation & Compliance
Setting up an IC-DISC requires careful structuring and adherence to strict IRS rules. We handle the entire setup process, ensuring your entity is properly formed and operates in accordance with tax laws. Our services include:


✔ Entity Formation – Establishing your IC-DISC as a separate legal entity, including state filings and corporate structuring.


✔ Shareholder Structuring – Advising on optimal ownership structures to maximize tax benefits.


✔ IRS Compliance – Registering your IC-DISC with the IRS and preparing necessary elections.


✔ Ongoing Governance – Ensuring your IC-DISC remains in good standing with required corporate formalities.

2. Commission Computation & Optimization
Choosing the right commission calculation method is critical to maximizing tax savings. We analyze your export sales and apply the most advantageous approach, including:


✔ 50% of Export Taxable Income Method – Allows your IC-DISC to earn a commission of up to 50% of export-related taxable income.


✔ 4% of Gross Export Receipts Method – A simple alternative that calculates commissions as 4% of qualifying export revenue.


✔ Transaction-by-Transaction Analysis – Identifying the best approach for each product line, customer, or market to maximize benefits.


✔ Alternative Methods for Special Cases – Exploring industry-specific strategies for manufacturers, distributors, and service providers.

3. IRS Reporting & Documentation
IC-DISC compliance requires accurate record-keeping and timely tax filings. We manage all reporting requirements, ensuring your IC-DISC meets its annual obligations:


✔ IC-DISC Tax Return Preparation (Form 1120-IC-DISC) – Completing and filing the required IRS forms.


✔ Export Sales Documentation Review – Verifying that transactions qualify for IC-DISC treatment.


✔ Dividend & Shareholder Reporting – Tracking distributions and maintaining proper tax documentation.


✔ Audit Support & Risk Mitigation – Assisting with IRS inquiries and ensuring compliance with transfer pricing rules.

4. Ongoing Tax Planning & Strategic Advisory
An IC-DISC is most effective when integrated into a comprehensive tax strategy. We provide ongoing advisory services to align your IC-DISC with broader financial and tax planning objectives:

✔ Multi-Year Tax Planning – Ensuring your IC-DISC strategy remains efficient as tax laws change.


✔ Coordination with CPAs & Advisors – Collaborating with your existing tax team to optimize implementation.


✔ Cash Flow & Distribution Planning – Structuring dividend payouts to maximize after-tax benefits.


✔ Advanced Structuring Opportunities – Exploring additional strategies, such as leveraged IC-DISC structures for enhanced tax savings.

Support for CPA Firms and Advisors
We collaborate with CPA firms, tax professionals, and financial advisors to provide specialized IC-DISC expertise. Our team can assist with:


✔ IC-DISC Setup & Compliance Reviews – Ensuring your clients’ structures meet IRS requirements.


✔ Commission Calculations & Optimization – Helping determine the most beneficial method.


✔ Technical Advisory & Consulting – Providing guidance on complex IC-DISC-related tax matters.


✔ Seamless Integration – Working alongside your firm to enhance your service offerings.

If your firm has clients who could benefit from an IC-DISC, we offer white-label solutions or direct client support, ensuring they receive the best possible tax savings without disrupting your existing relationships.

Why Work with Transglobal Tax Solutions?
With deep expertise in international tax and export incentives, we work closely with exporters, CPAs, and financial advisors to ensure businesses fully leverage IC-DISC while maintaining compliance. Our approach is practical, strategic, and customized to help you achieve maximum tax savings with minimal complexity.

📞 Contact us today to learn how IC-DISC can benefit your business! (415­) 830-1756