Export Advisors Blog

IC-DISC Maximization – Not All Calculations are Created Equal

Posted by David Spray on Dec 20, 2017 11:36:31 AM

If you have not fully maximized your IC-DISC commission deduction, you could be leaving significant tax savings on the table that you are entitled to. Maximizing the IC-DISC commission is usually synonymous with performing a Transaction by Transaction (TxT) calculation.

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Topics: IC-DISC: The Basics, CPAs and CPA Firms

IC-DISC News Update

Posted by David Spray on Dec 8, 2017 3:05:24 PM

We have some great news to share. Based on the House and Senate bills that were submitted last week, the IC-DISC appears to still be a viable tax savings vehicle for the foreseeable future.

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Topics: Industry News

Urgent Action Needed to Save IC-DISC

Posted by David Spray on Nov 14, 2017 11:35:50 AM

Why is Action Needed?
Under both the House and Senate versions of the Tax Reform Bill presented last week in Washington, one thing is clear: Businesses organized as pass-through entities are going to see their taxes increase. The S Corp Washington Wire lays out all the ways in which pass-through entities are hurt by this proposed tax bill.
There is a provision in the Senate version which would repeal the IC-DISC export incentive.  Not only is this bad policy, this will cause a significant increase in the tax burden of U.S. based exporters.
What Should You Do?
Now is the time to reach out to your U.S. Senator and your Congressman and let them know that the provisions in this bill will increase your taxes! Emphasize that the IC-DISC is an export incentive - not a base erosion and profit shifting provision. This incentive allows you to export your U.S. manufactured goods by allowing you to be more competitive. This further allows you to make investments in your U.S. based business and to hire more U.S. employees. Also, let them know what industry you are in, if compelling, how many employees in your company, and finally what actions you may be forced to take if you were to experience a large tax increase due to the repeal of the IC-DISC. Maybe you would consider hiring less employees, reducing the number of your current employees, or possibly even looking at moving manufacturing outside the U.S. to a lower cost location.
A form letter will be disregarded and therefore we have been advised not to provide our clients with any form letters. We encourage you to draft your own letter on your own letterhead. However, to give you a starting point, we have attached a couple of letter templates – the first is a letter to the Senate Finance Committee and the second would be a letter for your specific Senator.
We have also prepared an IC-DISC Position Paper and have provided this to a number of staffers in Washington. It has been suggested that you attach this position paper to your letter when you send it in.
Below is a list of the Senate Finance Committee Republicans and their Key Staff Members: Here is how you can help:
1. Call the Senators' Offices (see list below) advocating for the removal of the IC-DISC repeal inclusion in Tax Reform and why it is important to your company
2. Edit and then Email the draft letter to the Senators' Key Staffers on Tax
3. Last but not least, if your company resides or does business in another Senators' district please send the letter and our position paper to your Senators' contact form. 

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Topics: Industry News

Do You Work With a CPA Firm? You Can Still Utilize the IC-DISC!

Posted by David Spray on Oct 26, 2017 12:25:35 PM

When we meet with potential clients who are interested in utilizing the IC-DISC to maximize after-tax income, one common concern that comes up is that they are already working alongside a CPA firm to manage the rest of their tax and accounting work.

Today, we'd like to take a quick look at why you shouldn't hesitate to get started with the IC-DISC, even if you already work with a CPA.

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Topics: CPAs and CPA Firms

U.S. Export Industry News Roundup, Vol. 2

Posted by David Spray on Oct 11, 2017 9:40:00 AM

Part of our effort to support those involved in the United States exporting industry involves keeping an eye out for interesting news involving U.S. exports.

Our first U.S. Export Industry News Roundup was back in June, so we thought we'd take a look at what's new this fall in exports.

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Topics: Industry News

the IC-DISC Is an Exporter's Dream Come True

Posted by David Spray on Sep 21, 2017 5:51:58 PM

The technology that fuels our economy continues to change, with increased efficiencies allowing for exporters to work in a truly global marketplace.

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Topics: IC-DISC: The Basics

3 IC-DISC Mistakes Business Owners Make

Posted by David Spray on Sep 7, 2017 7:40:13 AM

The IC-DISC is an exceptional financial incentive for exporters, designed to help members of the export industry (or businesses whose transactions qualify as exports) to compete more effectively in an increasingly competitive global marketplace.

Many business owners work with IC-DISC experts like Export Advisors, or even trust their CPA firm to take care of the process on their behalf, and don't necessarily worry about the day-to-day details of the program.

Some business owners assume they can handle the whole process themselves, from initial implementation to continued management of the DISC, but they eventually become bogged down with the extra work of maintaining a Qualified status or even find themselves making mistakes with serious risks and potential consequences.

We'd like to walk you through three IC-DISC mistakes business owners make and how you can avoid them.

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Topics: Risks of the IC-DISC

Why CPA Firms Should Consider Using Export Advisors For the IC-DISC

Posted by David Spray on Aug 24, 2017 2:30:00 PM

Since the IC-DISC began as a financial incentive for exporters (and those whose transactions qualify as exports) that helps to maximize after-tax income, many exporters simply assume that if the IC-DISC is right for them, their CPA firm will handle it.

The truth is, CPA firms often rely on businesses that exclusively focus on the IC-DISC.

We here at Export Advisors often partner with CPAs and CPA firms, allowing their clients to reap the significant potential financial benefits of the IC-DISC without the possible risks involved in doing so without expert help.

How does working with Export Advisors help CPAs and CPA firms? Let's take a look.

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Topics: CPAs and CPA Firms

The Drawbacks of Trying to Implement an IC-DISC without Expert Help

Posted by David Spray on Aug 10, 2017 10:08:28 AM

Once you've done your research into the origins of the IC-DISC program and used our Potential Savings Calculator to learn just how much per year you could save by maximizing your after-tax income, you may feel ready to take on the task and set up your IC-DISC yourself.

While we've met with businesses in the export industry that have set up their IC-DISCs without utilizing expert help, we've generally found that they took more than a few risks in doing so.

Today, we'd like to look at the risks of taking a DIY approach to IC-DISC instead of speaking with someone who has experience and knowledge of the program's complexities.

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How Does the IC-DISC Encourage Exporting?

Posted by David Spray on Jul 19, 2017 10:14:28 AM

For members of the export industry (and even those who may not realize they have business transactions that qualify as exports!), the IC-DISC can help to maximize after-tax income, increasing value for your shareholders and yourself.

The IC-DISC was created in 1971 to encourage exporting, and you may be wondering just how it does that.

As part of our series on the basic facts of the IC-DISC program, we'll take a short look at that today.

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Our business strategy of focusing solely on the IC-DISC program and partnering with entrepreneurs has resulted in proprietary IC-DISC programs, processes, and systems that are unparalleled in the marketplace.

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