IC-DISC Myths
Since the IC-DISC started providing tax benefits in 1971, myths and misinterpretations about this government incentive have continued to be widespread.
Separating Fact from Fiction . . .
Permanent tax benefits for owners of flow-through companies (S-Corps, Partnerships) have been available since the Jobs and Growth Tax Relief Reconciliation Act of 2003 – expanding both beneficiaries and benefits. Originally scheduled to sunset in 2010, the pertinent rules and rates affecting IC-DISC savings were extended, modified, and ultimately made permanent. As with many tax incentives, a cottage industry of “overnight” experts has sprung up. Taxpayers often unknowingly claim savings of far too little, or far too much, from the IC-DISC.
SMART BUSINESS magazine spoke with Quantitax and leading, general CPA firms about some of the most common myths that continue to be perpetuated. Download the article here:
