Instructions For Form 5713 Schedule C - Tax Effect Of The International Boycott Provisions


Schedule C (Form 5713) (Rev. 1-97)
operations under section 908(a),
Line 3a(5).—Enter the prorated share
952(a)(3), 995(b)(1)(F), or 927(e)(2).
of subpart F international boycott
Section references are to the Internal
income on Worksheet A in the Form
An IC-DISC whose tax year differs
Revenue Code.
5471 Instructions (e.g., on line 24 of
from the common taxable year of the
Purpose.—Schedule C (Form 5713) is
the June 1995 revision of Worksheet
controlled group of which it is a
used to compute the loss of tax
member does not need to amend its
benefits attributable to participation in
return to show on Schedule J (Form
Line 3b.—Enter this amount on
or cooperation with an international
1120-IC-DISC) the amount of IC-DISC
Worksheet A in the Form 5471
boycott. Complete Schedule C if you
benefits lost because of boycott
Instructions (e.g., on line 24 of the
completed either Schedule A or
participation. Because the IC-DISC
June 1995 revision of Worksheet A).
Schedule B of Form 5713.
benefits are lost at the shareholder
Line 4a(1).—Enter the prorated share
Note: Complete Schedule C (Form
level, the shareholder must include in
of section 995(b)(1)(F)(i) amount on
5713) if you are a partner or an
income the prorated share of income
line 4a(1).
IC-DISC shareholder. Partnerships do
attributable to boycott operations
Shareholder that is not a
not complete Schedule C.
shown on line 4a(3).
C corporation.—Enter the pro rata
Controlled groups.—Unless a
Line 2a(1).—Enter the foreign tax
share of section 995(b)(1)(F)(i) amount
controlled group (described in section
credit before adjustment on Form
(e.g., for 1996, the pro rata share of
993(a)(3)) files a consolidated return,
1116 or 1118 (e.g., individual filers,
line 8, Part I, Schedule J, Form
each member may independently
enter the amount from line 30, Part IV,
choose to apply either the
of the 1996 Form 1116. Corporate
Shareholder that is a
international boycott factor under
filers, enter the amount from line 10,
C corporation.—Enter the pro rata
section 999(c)(1) or to identify
Part III, Schedule B, of the July 1994
share of the excess amount of section
specifically attributable taxes and
revision of Form 1118).
995(b) (1)(F)(i) multiplied by 16/17
income under section 999(c)(2). Each
Line 2a(3).—Enter the reduction of
(e.g., for 1996, the pro rata share of
member must consistently use a
foreign tax credit from this line on
line 8, Part I, Schedule J, Form
single method to figure the loss of tax
either Form 1116 or 1118 (e.g.,
1120-IC-DISC multiplied by 16/17).
individual filers, enter this amount on
Line 4a(3).—Enter this amount on
For example, a member that
line 31, Part IV, of the 1996 Form
Form 1120-IC-DISC (e.g., on line 10,
chooses to use the international
1116. Corporate filers, enter this
Part I, Schedule J, of the 1996 Form
boycott factor must apply it to
amount on line 11, Part III, Schedule
determine its loss of the section 902
B, of the July 1994 revision of Form
Line 4b.—Enter the specifically
indirect foreign tax credit on a
attributable taxes and income on Form
dividend that another member of the
Line 2b.—Enter the reduction of
1120-IC-DISC (e.g., amount on line
controlled group paid to it, even if the
foreign taxes available for credit from
10, Part I, Schedule J, of the 1996
other member determines its own loss
line 2b on Form 1116 or 1118 (e.g.,
Form 1120-IC-DISC).
of tax benefits by identifying
individual filers, line 12, Part III, of the
specifically attributable taxes and
Line 5a(1).—Enter the exempt foreign
1996 Form 1116. Corporations, enter
trade income from Form 1120-FSC
this amount on line D, Part II,
(e.g., add columns (a) and (b), line 10,
A person who applies the
Schedule G, of the July 1994 revision
Schedule B, of the 1996 Form
international boycott factor to one
of Form 1118).
operation must, however, apply the
Line 3a(1).—Enter your share of the
factor to all that tax year’s operations
Line 5a(3).—Enter this amount on
income of the controlled foreign
under section 908(a), 952(a)(3),
Form 1120-FSC (e.g., line 2, Schedule
corporation on line 3a(1).
995(b)(1)(F)(ii), or 927(e)(2).
F, of the 1996 Form 1120-FSC).
Nonexempt foreign trade income of
A person who identifies specifically
Line 5b.—Enter this amount on Form
a foreign sales corporation (FSC) that
attributable taxes and income under
1120-FSC (e.g., line 2, Schedule F, of
was computed without regard to the
section 999(c)(2) must use that
the 1996 Form 1120-FSC).
administrative pricing rules is subject
method for all that tax year’s
to the subpart F rules. Enter your
share of these types of income on
line 3a(1).


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