Previously, alliantgroup has described some of the intricacies related to setting up and maintaining an IC-DISC. Additionally, we have addressed reservations that some qualified taxpayers have in regards to taking advantage of the IC-DISC benefit through an expert provider. The purpose of this post is to clarify the ways in which seeking specialized professional consultation relating to the IC-DISC benefit is advantageous for a company, and to invoke urgency within all United States exporters so that they can begin receiving benefit post haste.
Given the litany of taxes that individuals and corporations are responsible for, it is important that tax breaks and benefits are analyzed and completed with the utmost accuracy and due diligence. Luckily, there exist professionals within the tax industry who can relieve companies of this responsibility. The mechanics of an IC-DISC are no different, in that, as long as the IC-DISC is properly maintained and the benefit properly calculated, the “deduction” can greatly benefit manufacturers and distributors that are exporting from the United States. The first step in taking advantage of this benefit, which is the last remaining export incentive, is the incorporation of the IC-DISC entity. The process can be daunting, but that is where the IC-DISC experts at alliantgroup step in. Furthermore, alliantgroup’s experienced professionals understand that time is of the essence with incorporation, so that a company can start claiming benefit as soon as possible. We have extensive knowledge on all statutory deadlines and prerequisites that must be met in order to not only incorporate the IC-DISC, but to properly analyze and deliver the most accurate benefit within the letter of the law.
To better demonstrate why companies should utilize a professional service provider for identifying potential IC-DISC benefit, we will explore one of the experiences that the experts at alliantgroup have dealt with. In this example, Company A, a manufacturer of nutritional supplements, worked with a small service provider that did not specialize in the IC-DISC benefit. Due to the service provider’s inexperience with the IC-DISC benefit, Company A incorrectly classified assets as producer’s loans. Additionally, Company A was provided a high-level commission analysis, which did not utilize a line-by-line approach to qualify products and determine the benefit from their exports. Once Company A engaged alliantgroup’s services, alliantgroup was able to guide Company A through the proper course of action in order to sustain Company A’s IC-DISC benefit and eligibility. These actions included, but were not limited to: deemed distributions, payment of interest with respect to the illegitimate producer’s loans, and notification to the IRS. Finally, alliantgroup’s IC-DISC experts were able to provide Company A with a proper commission calculation that employed a detailed and accurate transaction-by-transaction and product-by-product analysis.
Ultimately, alliantgroup was able to provide an increased benefit to Company A in both quality and quantity – a direct result of a manufacturer or distributor seeking specialized consultation from a professional service provider. This consultation is demonstrative of why we at alliantgroup so drastically urge any and all exporters to seek out the experts within the industry.