IRS Form 4876-A – If your business exports U.S.-made products and you want to defer taxes on export profits while staying fully compliant, IRS Form 4876-A is the critical first step. This form lets a domestic corporation elect to be treated as an Interest Charge Domestic International Sales Corporation (IC-DISC)—a powerful but underutilized export tax incentive still available in 2026.
What Is an Interest Charge DISC (IC-DISC)?
An IC-DISC is a domestic corporation that qualifies for special tax treatment on export income. The corporation itself pays no corporate income tax. Instead, shareholders are taxed on the IC-DISC’s income only when it is actually or deemed distributed. A portion of the export profit can be deferred, but shareholders pay an annual interest charge (based on the 52-week Treasury bill rate) on the deferred tax liability via Form 8404.
Congress created (and later modified) the IC-DISC rules to encourage U.S. exports. Today it remains one of the few remaining export incentives for small- and mid-sized exporters.
Who Should File IRS Form 4876-A?
Corporations (C corps only—not S corps or certain financial institutions) that:
- Are organized under U.S. state or D.C. law
- Expect at least 95% of gross receipts to be qualified export receipts
- Expect at least 95% of assets to be qualified export assets
- Will maintain only one class of stock with at least $2,500 par/stated value
- Will keep separate books and records
- Will conform their tax year to the principal shareholder’s tax year (highest voting power)
Common users: Manufacturers, distributors, software/SaaS companies with foreign sales, engineering/architectural firms performing services abroad, and exporters using commission IC-DISC structures.
Ineligible: S corporations, banks, insurance companies, and others listed in IRC §992(d).
Key Deadlines for Form 4876-A (2026 and Beyond)
| Situation | Filing Deadline |
|---|---|
| First tax year (new corporation) | Within 90 days after the beginning of the tax year |
| Subsequent tax years | During the 90-day period immediately before the first day of the tax year |
| Supplemental election (new shareholders) | Within 90 days of the start of the tax year the election takes effect |
Important: All shareholders on the first day of the tax year for which the election is effective must consent (irrevocable). Missing the 90-day window generally means you lose IC-DISC status for that year.
Step-by-Step: How to Complete and File Form 4876-A?
- Prepare the corporation — Obtain EIN (Form SS-4), open a bank account, issue one class of stock ≥$2,500 par value.
- Fill out Part I — Name, address, EIN, principal business activity code (from Instructions for Form 1120-IC-DISC), tax year ending date, effective date, date business began, and list every shareholder (or expected shareholder) with shares held and identifying numbers.
- Part II – Shareholders’ Consent — Every shareholder signs and dates (or attach separate consent statements). Spouses, trusts, estates, and entities have specific signing rules.
- Sign & date — An authorized corporate officer (president, treasurer, etc.) signs under penalties of perjury.
- File — Mail to the same IRS Service Center where you will file Form 1120-IC-DISC:
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999
(Current for 2026 filings; confirm at IRS.gov/where-to-file if needed).
Tip: If ownership changes after filing but before the election year begins, file a Supplemental Form 4876-A marked “SUPPLEMENTAL” with updated shareholder info and consents.
After the Election: Ongoing IC-DISC Requirements
- File Form 1120-IC-DISC (information return) by the 15th day of the 9th month after year-end (no extensions allowed).
- Meet the 95%/95% tests every year (or make qualifying distributions to cure).
- Shareholders report deemed and actual distributions on their returns and pay the interest charge on Form 8404.
- Maintain separate books and records.
Benefits of IC-DISC Election
- Tax deferral on a significant portion of export profits (typically via commission or buy-sell structure).
- No corporate-level tax on the IC-DISC.
- Exemption from accumulated earnings tax.
- Works for both commission IC-DISCs (most popular for small exporters) and buy-sell IC-DISCs.
Common Mistakes to Avoid
- Missing the strict 90-day election window
- Failing to obtain consents from all shareholders
- Using more than one class of stock
- Not conforming the IC-DISC’s tax year to the principal shareholder
- Forgetting the annual Form 1120-IC-DISC filing
FAQs About Form 4876-A and IC-DISC
Can an existing corporation make the election?
Yes—file during the 90 days before the start of the desired tax year.
Is the election permanent?
It stays in effect until revoked or terminated (see Reg. §1.992-2(e)).
Do foreign shareholders affect eligibility?
Foreign persons may own shares, but they must still consent, and special reporting applies.
Where can I get the latest instructions?
All official instructions are printed on page 2 of Form 4876-A (Rev. September 2016)—still the current revision as of February 2026.
Final Advice
Electing IC-DISC status with Form 4876-A can deliver substantial tax savings for qualifying exporters, but the rules are technical and the deadlines unforgiving. Always consult a CPA or tax attorney experienced in international tax before filing.
Ready to get started?
Download the official form now: IRS Form 4876-A PDF
For the latest Form 1120-IC-DISC instructions (Rev. December 2025): IRS.gov/Form1120ICDISC
This article is for informational purposes only and is not tax or legal advice. Tax laws can change; verify all details with the IRS or a qualified professional for your specific situation.