Instructions For Form 5713 (Schedule A) - International Boycott Factor


Schedule A (Form 5713) (Rev. 1-97)
General Instructions
international boycott factor will reflect
Column (3).—Enter the sales that are
the purchases, sales, and payroll of all
made to or from boycotting countries
References are to the Internal
the controlled groups to which you
and that are attributable to the
Revenue Code.
operation reported on each line.
Purpose.—Complete Schedule A
Partnerships and trusts.—You are
Column (4).—Enter the total payroll
(Form 5713) if you cooperated with or
deemed to have a prorated share of
that was paid or accrued for services
participated in an international
the purchases, sales, and payroll of
performed in boycotting countries and
boycott. Use the international boycott
each partnership in which you are a
that are attributable to the operation
factor to figure the loss of tax benefits.
partner and of each trust if you are
reported on each line.
If you do not use the international
treated as the owner under section
Line 1.—Add columns (2), (3), and (4).
boycott factor for this purpose, you
671. As a result, your international
The numerator of your international
must specifically attribute taxes and
boycott factor may also reflect
boycott factor includes all of the
income on Schedule B (Form 5713).
purchases, sales, and payroll of
Who must file.—Anyone who
partnerships and trusts.
1. Purchases you made from
cooperates with or participates in an
boycotting countries.
Specific Instructions
international boycott must file either
2. Sales you made to or from
this form or Schedule B (Form 5713)
Compute a separate boycott factor
boycotting countries.
to figure the loss of tax benefits. One
and a separate schedule for each
act of cooperation or participation
3. Payroll you paid or accrued for
international boycott you cooperated
creates the presumption that you
services performed in boycotting
with or participated in. Include your
cooperate with or participate in the
own operations and, if applicable, the
boycott unless you rebut the
Do not include amounts attributable
operations of partnerships, trusts, and
presumption as explained below. The
to operations for which you rebutted
members of your controlled group.
presumption applies to all your
the presumption of cooperating with
See the specific instructions for
operations and those of each member
or participating in the boycott.
questions on lines 7 through 13 of
of any controlled groups (defined in
Line 2.—The denominator of the
Form 5713 to see what years you
section 993(a)(3)) to which you belong,
international boycott factor reflects all
should report purchases, sales, and
in each country that helps carry out
your purchases, sales, and payroll in
payroll for partnerships, trusts, and
the boycott.
or related to all countries other than
controlled groups.
Boycott operations.—All your
the United States. If applicable, the
Complete columns (1) through (4) in
operations in a boycotting country are
denominator also reflects these items
the following manner:
considered to be boycott operations,
for your controlled groups,
unless you rebut the presumption of
Show all boycott purchases, boycott
partnerships, and trusts. Include here
cooperating with or participating in the
sales, and boycott payroll from one
the amounts that are attributable to
boycott, as explained below. In
operation on one line.
operations for which you rebutted the
addition, your operations that are not
Partnerships.—For a partnership,
presumption of cooperating with or
in a boycotting country are boycott
complete only lines a through o, the
participating in the boycott.
operations if they are connected to
total of columns (2), (3), and (4), and
Line 3.—Partnerships do not enter the
your cooperation with or participation
line 2. Give this information to all
amount from line 3 on Schedule C. All
in the boycott.
partners so they can compute their
others enter the international boycott
Rebutting the presumption of
own international boycott factor.
factor from line 3 of this form on the
boycott cooperation or participation.—
Column (1).—Enter the name of the
appropriate line of Schedule C (Form
You can rebut the presumption of
country that requires participation in or
5713) as follows:
cooperation with or participation in a
cooperation with an international
If you reduce your foreign tax credit
boycott for a particular operation by
boycott as a condition of doing
(section 908(a)), enter the international
demonstrating that the operation is
business in that country. The country
boycott factor on line 2a(2).
separate from any cooperation with or
named in column (1) is not necessarily
If you are denied a tax deferral on
participation in an international
the country in which the operation
subpart F income (section 952(a)(3)),
boycott. The presumption applies only
takes place. For example, if you have
enter the international boycott factor
to operations in countries that carry
an operation in Country Z that is not a
on line 3a(4).
out the boycott. You do not need to
boycotting country and the operation
rebut the presumption for operations
If you are denied a tax deferral on
related to Country X that is a
that are related to those countries, but
IC-DISC income (section
boycotting country, enter the name of
that take place outside of those
995(b)(1)(F)(ii)), enter the international
Country X in column (1). The Secretary
boycott factor on line 4a(2).
maintains a list, under section
International boycott factor.—Your
999(a)(3), of countries that require
If you are denied an exemption of
international boycott factor reflects
participation in or cooperation with an
foreign trade income of a FSC (section
boycott purchases, boycott sales, and
international boycott. This list may not
927(e)(2)), enter the international
boycott payroll.
be all-inclusive.
boycott factor on line 5a(2).
Controlled groups.—All members of
Column (2).—Enter all purchases that
a controlled group generally share one
are made from boycotting countries
international boycott factor, which
that are attributable to the operation
reflects all their purchases, sales, and
reported on each line.
payroll. However, if you belong to two
or more controlled groups, your


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