Form 1120-IC-DISC

Form 1120-IC-DISC

A tax return for the income of an IC-DISC, which is a company in the United States that exports to non-U.S.-based clients. An IC-DISC files Form 1120-IC-DISC to report its revenue, expenses, and profits or losses. It also uses Form 1120-IC-DISC to claim deductions and credits, which is especially important in the United States because corporate tax rates historically have been high compared to other countries.
References in periodicals archive ?
Form 1120-IC-DISC, Schedule P, Intercompany Transfer Price or Commission
Income from an IC-DISC is generally taxed directly to the shareholders, not the corporation (see above under Form 1120-IC-DISC, Schedule P).
According to filings of Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, IC-DISCs distributed $516.2 million to shareholders in 2010.
Tax-deferred IC-DISC income reported to shareholders--This amount was reported on Form 1120-IC-DISC, Schedule K, Shareholders Statement of IC-DISC Distributions.
Little additional overhead or operating cost is associated with the IC-DISC (they do need to file an annual information return, Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return).
The guidelines then instruct the examining agent to review the information from a broadly conceptual approach, keeping in mind whether (1) the workpapers and related Form 1120-IC-DISC, Schedules P, Intercompany Transfer Price or Commission, were prepared on a tax basis (as opposed to book basis); (2) the expense allocations are reasonable (i.e., large expenses not allocated to export income should be scrutinized); (3) the intercompany pricing rules of Sec.
Tax-Deferred IC-DISC Income Reported to Shareholders.--This amount was reported on Form 1120-IC-DISC, Schedule K, Shareholders Statement of IC-DISC Distributions.