IC-DISC Services and Case Studies

Not all TxT calculations are created equal

Our team specializes in export tax incentives, performing “true” TxT calculations that determine the maximum allowable commission under the provisions of the Internal Revenue Code and related Regulations. These are not your run-of-the-mill “Microsoft Excel” TxT calculations. Running a TxT computation in a spreadsheet is simply not capable of handling all the required iterations required of a “true” TxT calculation.

Instead, we run cleansed and reconciled transactional data through a powerful sequel server-based algorithm to determine the maximum allowable commission. Every allowable and possible combination is carefully analyzed, and the best option is selected by our highly experienced IC-DISC specialists.

Avoid a negative IRS audit result

With a WTP Advisors “true” TxT calculation, you get peace of mind from an accurate and thorough application of IC-DISC rules. Trust us. The overall pain and cost caused by invalid calculations will far exceed the tax benefit of the original calculations if those calculations can’t be sustained. Our team analyzes the results, looking for inconsistencies and variances, reviewing adjustments, and allocations and apportionments of deductions to ensure reconciliation with tax returns and a result that is sustainable.

IC – Disc Services Include

IC-DISC structure and benefit analysis
IC-DISC formation and annual qualification
Maximizing IC-DISC tax savings
Identifying all qualified gross receipts
Optimizing expense allocation and apportionment
Performing “True” TxT analysis
Detailed reporting supporting the results
Roth-IRA DISC & foreign owned DISC analysis and implementation
Preparation of Forms 1120 IC-DISC & Schedule Ps

SET UP

A new corporate entity must be created
ELECT

IC DISC status must be elected within 90 days on IRS Form 4876-A.

The status is exempt from Federal tax on earnings
AGREEMENT

IC DISC status must be elected within 90 days on IRS Form 4876-A.

The status is exempt from Federal tax on earnings
DISTRIBUTION

When distributed to the shareholders, the income becomes qualified dividend income.

IC-DISC & FDII technology solution

ExPortal is WTP Advisors’ technology solution designed to optimize IC-DISC commission and Foreign Derived Intangible Income deductions. ExPortal embodies all the of our collective IC-DISC and FDII knowledge and experience, plus it provides a state-of-the-art technology tool that allows a user to manage IC-DISC implementations and an IC-DISC practice, complete all necessary compliance and perform tax benefit optimization. ExPortal also generates an Excel based reporting package to support calculations. ExPortal may be used by WTP Advisors in conjunction with our consulting services or if you have your own IC-DISC practice, may be licensed and used by your own team.

ExPortal: Your IC-DISC Optimization Hub

Unleash the power of ExPortal, WTP Advisors' cutting-edge technology solution. Seamlessly managing IC-DISC implementations and practices, it combines expertise with a state-of-the-art tool for compliance, tax benefit optimization, and Excel-based reporting. Elevate your IC-DISC game with ExPortal!

Maximize FDII Deductions with ExPortal

Dive into ExPortal, the ultimate solution from WTP Advisors designed for optimizing IC-DISC commission and Foreign Derived Intangible Income (FDII) deductions. Whether used alongside our consulting services or licensed for your own IC-DISC practice, ExPortal merges expert knowledge with advanced technology, revolutionizing how you navigate FDII deductions.