SUCCESS STORIES
Real-world case studies – Quantitax assisting companies to discover and/or improve annual IC-DISC benefits.
Select industry case study - actual scenarios in which Quantitax helped significantly increase tax savings
Case Study - Food Production
A Michigan confectioner sold some of its products to Costco distribution centers in the United States. After consultation with their CPA firm and Quantitax, it was discovered that Costco was able to provide the ultimate destination of the confectioner's goods - many of which were sold by Costco in their Canadian warehouses. As the products all left the United States within 12 months, the destination, U.S. manufacture, and U.S. content tests were all met. Savings exceeded $30,000 annually. No other additional information was required to be collected
Case Study - Manufacturing
An Ohio manufacturer of aviation components properly established an IC-DISC and used the entity to achieve tax savings for many years. After meeting with Quantitax to determine if savings could be increased, our team discovered that shipments delivered to freight forwarders in the United States were destined for foreign locations of U.S. based customers for ultimate use in Asia and Europe. The prior IC-DISC consultant did not realize that such sales were eligible. The qualification of these additional sales, and performance of a transaction by transaction ("T x T") calculation increased the IC-DISC savings by over $123,000 in year one alone.
Case Study - Distribution
An international distributor of auto parts agreed to allow Quantitax to perform a complimentary, detailed transaction by transaction ("T x T") calculation utilizing our proprietary software to maximize the intended, allowable benefits from their IC-DISC. The incremental savings exceeded $258,000 in the first year.
Case Study - Software
A Colorado based technology company created software, using domestic and foreign programmers. The software was licensed to U.S. based multinationals. Licenses for some of the clients were utilized by their foreign offices and employees. While this was a domestic sale for the software company, IC-DISC benefits were claimed to the extent the ultimate users were located outside of the United States. The IRS, in its most recent IC-DISC Audit Guide, clarified its position that software licenses may qualify.
Case Study - Agriculture
The largest national grower/distributor of a vegetable crop worked with Quantitax to improve its IC-DISC commission. The California based company used an IC-DISC for years to achieve the basic commission. The company was able to use existing data from their systems to enable calculation of the varying costs and sales price of its individual shipments throughout the year. Quantitax was able to perform a detailed transaction by transaction ("T x T") calculation utilizing our proprietary software to maximize the intended, allowable benefits from their IC-DISC. The incremental savings exceeded $580,000 in the first year.
