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Interest Charged - Domestic International Sales Corporation


July 11 - 12, 2013
Chicago, IL
Product Code: TMC93
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A two-day basic to intermediate level conference with live group instruction on the Interest Charged - Domestic International Sales Corporation (IC-DISC). It is the only remaining tax benefi­t to U.S. companies that export U.S. manufacture. The IC-DISC provides multiple benefi­ts including ease to create exemption from U.S. taxation and the dividends distributed from the IC-DISC meet the criteria for the qualifi­ed dividend tax rate.


Course Level: basic to intermediate; Delivery Method: live group

Learning Objectives

After attending this event, participants will be able to

  • Identify qualified gross receipts
  • Describe how to compute DISC income
  • Discuss the impact of foreign tax credit and domestic production deduction impact on DISC
  • Describe how to structure an IC-DISC
  • List components of a DISC return

All paid attendees will receive the Bloomberg BNA Portfolio: #934 2nd, Export Tax Incentives
*One Portfolio per paid attendee. Quantities are limited.

Prerequisites

There are no prerequisites for attending this program.

 

SUBSTITUTIONS, CANCELLATIONS & COMPLAINTS

Cancellations received more than 72 business hours prior to the meeting will be issued a credit. A $350 fee will apply to cancellations received within 72 business hours of the event. No credit card or cash refunds will be issued at any time. For more information regarding administrative policies, such as complaints and refunds, please contact us at 800.372.1033, or e-mail customercare@bna.com. Credits will not be issued for "no shows".

Chicago - Baker & McKenzie

300 East Randolph Drive

Chicago, IL 60601

Tel: 312.861.6580

Thursday July 11, 2013

8:00 a.m. Registration & Continental Breakfast

9:00 a.m. Chairman’s Introduction & Overview of IC- DISC

10:15 a.m. Coffee Break

10:30 a.m. Identifying Qualified Gross Receipts

  • Sales and Leasing of Export Property
  • Destination Test
  • Foreign Content Test
  • Use within the United States Test
  • Related and Subsidiary Services
  • Dividends from a FISC
  • Engineering and Architectural Services

12:00 p.m. Lunch

1:00 p.m. Identifying Qualified Assets in Addition to Export Property

  • Inventories
  • Qualified Receivables and Accounts, 60-Day Rule, 90-Day Rule
  • PEFCO and Eximbank Paper
  • Working Capital Requirements - Bardahl Test
  • Funds Auditing Investment
  • FISCs

2:00 p.m. Computation of DISC Income

  • 50-50 Combined Taxable Income Method
  • 4% of Gross Receipts Method
  • Marginal Costing Method
  • Special Rule under 4% Method
  • Grouping
  • T X T Computation
  • Allocation of Expenses - Regulation 1.861-8 Grouping
  • Apportionment Between DISCs and Same Controlled Group

3:15 p.m. Break

3:30 p.m. Foreign Tax Credit and Domestic Production Deduction Impact on DISC

4:15 p.m. State Tax Issues

  • States Deferring to DISC Safe Harbor provisions
  • States Ignoring DISC Safe Harbor Provisions
  • Nevada Domicile Company for DISC or other State Tax friendly state
  • Double Tax Possibilities

4:45 p.m. Questions and Answers

5:00 p.m. Meeting Adjourns

Friday July 12, 2013

8:00 a.m. Continental Breakfast

8:30 a.m. Structuring Your IC- DISC   
 

  • Parent - Sub
  • Brother - Sister
  • Partnership
  • IRA Ownership
  • Roth IRA Ownership
  • Key Employee Ownership
  • Pure Deferral
  • Pure Conduit
  • Foreign Ownership
  • Illegal Payments

10:00 a.m. Break

10:15 a.m. Saving The Disqualified DISC

  • Late Election
  • Failing 95% Tests
  • Finding Additional Income and Assets, Gross Receipts and Liabilities
  • Deficiency Distribution

11:00 a.m. Review of DISC Return

  • How To Report Income and Expense
  • Deferred Income
  • Schedule M Adjustments
  • Over Distributions (Capital Gain)
  • Different Fiscal Years of Related Supplier and DISC
  • Schedule K To Shareholders

12:00 a.m. Selected Topics / General Discussion / Wrap-UP

12:45 p.m. Seminar Concludes

EDUCATIONAL COURSE CREDIT


Up To 12 CPE Credit hours available

Bloomberg BNA is registered with the National Association of the State Boards of Accountancy 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. Complaints regarding registered sponsors may be addressed to NASBA, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417.

Up to 12 CLE Credit hours available

Bloomberg BNA will apply for continuing legal education credits in any state or jurisdiction where available. For more information, please contact Bloomberg BNA customer service at 800.372.1033 and ask to speak to the CLE Accreditations Coordinator, or email us at accreditations@bna.com .

Hardship Policy

Bloomberg BNA offers a hardship policy for attorneys earning less than $50,000 per year. If an attorney wishes to take advantage of this option, he or she must contact Bloomberg BNA directly. For attorneys who are unemployed or earning less than $35,000 per year, a full discount off the price of the program will be awarded upon written proof of hardship. Attorneys earning between $35,000 and $50,000 per year will receive a 50% discount off the price of the program. Any attorney working in the public service sector also qualifies for a special price. If you have further questions regarding the hardship policy or seek additional information, please contact Bloomberg BNA customer service at 800.372.1033 and ask to speak to the CLE Accreditations Coordinator, or email us at accreditations@bna.com.