The Practical Tax Lawyer
2013, August
by Gary S. Wolfe and Ryan Losi
In 2013, after a five year-plus “Great Recession,” America needs jobs — millions of them have been lost since 2007. One solution is to propagate international export of U.S.-made products, which may both accelerate new U.S. hiring and increase U.S. jobs.
Under the Internal Revenue Code, a special type of U.S. corporation, an “IC-DISC” provides significant tax benefits for closely held, small and mid-size U.S. corporations who export U.S.-made products. By use of an IC-DISC, U.S. manufacturers who internationally export U.S.-made products may annually, indefinitely defer tax on $400,000 to $2.5 million of foreign sales revenues...