<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;line-height:130%"></span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">05.08.13</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><img src="https://cdn.andnowuknow.com/legacyWriterImages/hl_ic-disc_may_2013_BODY.jpg" alt="images 050813" />For those companies that export produce out of the US, there is an option that can possibly help save exporters money. If a closely held company earns significant income from exporting US-made products or from engineering or architectural services on foreign construction projects, an interest charge domestic international sales corporation (IC-DISC) might be something to consider. An IC-DISC is relatively inexpensive to set up and operate, according to Baker Tilly. It can reduce the federal tax rate on a portion of net export income for the company.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/hl_ic-disc_may_2013_BODY2.jpg" alt="images 050813" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Richard G. Pearce wrote in his blog for the firm Grant Konvalinka & Harrison, P.C, "As part of averting the "fiscal cliff", Congress extended the IC-DISC benefits, although changes in tax rates beginning January 1, 2013 have somewhat diminshed the tax savings." The blog continues, "Specifically, instead of having the IC-DISC's distributions taxed at 15% as in the past, that rate will only be available for taxpayers in the 25-35% individual tax bracket, and a 3.8% Medicare Surtax will be added, for a minimum rate of 18.8%. Tax filers with an AGI greater than $400,000 to $450,000, depending on filing status, will be subject to a 20% qualified dividend tax rate in addition to the 3.8% surtax for a total of 23.8%."<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> IC-DISCs are one of the few tax benefits specifically for exporters. IC-DISC's can be used by any company that directly exports the goods that it manufacturers; provides services that are conducted outside of the U.S.; or manufactures goods that are part of a final product that is exported, according to firm materials.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The IC-DISC was originally set to expire at the end of 2012.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>The firms could not immediately be reached for a comment.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.gkhpc.com/blog/2013/03/ic-discs--still-a-great-option-even-with-benefits-diminished-in-2013.shtml" target="_new"> Grant Konvalinka & Harrison, P.C.</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.bakertilly.com/IC-DISC-Still-Offers-Permanent-Tax-Savings-For-Exporters" target="_new"> Baker Tilly </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
