Maximizing your IC-DISC
If you have not fully maximized your IC-DISC commission deduction you could be leaving significant federal income tax savings on the table – annual “permanent” tax savings that are legally available to you. Our experienced team applies a broad knowledge of IC-DISC including implementation, annual management, and transactional computation abilities to deliver accurate, timely and valuable results.
Maximizing the IC-DISC commission is usually synonymous with performing Transaction by Transaction (TxT) calculations. At WTP Advisors, we’ve performed thousands of TxT calculations that have resulted in millions of dollars of sustained permanent cash savings for clients. To date all of our computations have been accepted by the IRS, most without any challenge whatsoever.
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
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.