turnkey disc services

Export Assurance provides turnkey solutions to take advantage of the beneficial export tax provisions provided by an IC-DISC. Included in our package are the following services:

1. Retaining at our expense tax, legal accounting and specialized administrative services for your exporting activities. Export Assurance designs, structures, forms, and operates your IC-DISC to address the structuring of the IC-DISC arrangement, and advising on:

(i) IRS required transfer pricing requirements and/or commissions with respect to the IC-DISC operations;

(ii) the calculation of income from your exporting activities, after allocating selling, general and administrative expenses and utilizing "Marginal Costing Rules", as set forth in the regulations in a manner designed to achieve the desired tax results of the planning and the timely payment of the computed commission to the IC-DISC;

(iii) the calculation of your "Export Promotion Expenses" under the regulations;

(iv) whether the IC-DISC should pay dividends on the portion of its earned commissions not "deemed" to be a dividend, or defer payment of the dividend, which then requires the timely payment of interest to the IRS (adjusted annually to reflect the "base period T-bill rate") based upon the deferred tax calculated at ordinary income tax rates;

(v) "Producer's Loan" issues, including computation of an arm's length interest charge under §482 in the case where dividends are deferred and the IC-DISC retained earnings are loaned back to your
export company, allowing the untaxed monies in the IC-DISC to be utilized by your company for its operations, and drafting and administering a conforming secured loan facility on behalf of the IC-DISC; and

(vi) state and local tax issues in order to minimize such taxes on the IC-DISC.

2. Designing, forming and organizing the IC-DISC under appropriate state law, along with its corporate minute book including by-laws, articles of incorporation, minutes, issuance of stock certificates, etc. in an appropriate and agreed to jurisdiction and maintaining a registered office in such location.

3. Drafting and maintaining the documentation related to the IC-DISC planning, including: (i) the commission or sales agreements in support of your export activities and it's relationship to the IC-DISC; and (ii) Producer's Loans agreements.

4. Retaining at our expense for you and oversee the CPA selected, as discussed above, who will draft the appropriate IC-DISC federal and state tax returns, as required, for review and revision and ultimate completion, signature and filing.

 

Two Post Oak Central
1980 Post Oak Blvd., Suite 1900
Houston, TX 77056-3877
713/850-0700
Fax: 713/850-8530
info@feldlaw.com


Tax Solutions for the Export Market