Form 5713 (Schedule B) - Specifically Attributable Taxes And Income
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Schedule B (Form 5713) (Rev. 1-97)
Page
General Instructions
out the boycott, so you do not need
Enter the column (4) total on line 2b,
to rebut the presumption for
Schedule C (Form 5713).
References are to the Internal
operations that are related to those
Column (5)—Enter your prorated
Revenue Code.
countries, but that take place outside
share of the controlled foreign
Purpose—Complete Schedule B
of those countries.
corporation’s income that is
(Form 5713) if you participated in or
attributable to the boycott operation.
cooperated with an international
Specific Instructions
(This includes your share of the
boycott and if you figure the loss of
section 923(a)(2) non-exempt income
File Schedule B (Form 5713) for the
tax benefits by specifically attributing
of a FSC.) This amount is not eligible
period covered by your income tax
taxes and income. If you do not
for tax deferral. Omit the foreign
return. Report only your own taxes
specifically attribute taxes and income
corporation’s income attributable to
and income; do not include other
for this purpose, you must compute
earnings and profits that are included
members of any controlled groups to
the international boycott factor on
in gross income under section 951
which you belong.
Schedule A (Form 5713).
(except by reason of section 952(a)(3)).
Complete columns (1) through (7) in
Who must file—Anyone who
Also omit amounts excluded from
the following manner:
participates in or cooperates with an
subpart F income by section 952(b). In
international boycott must file either
Show all specifically identifiable
figuring the amount to enter in column
this schedule or Schedule A (Form
taxes and income in each appropriate
(5), you are allowed a reasonable
5713) to figure the loss of tax benefits.
column from one operation on one
amount for deductions (including
One act of participation or cooperation
line.
foreign taxes) allocable to that income.
creates the presumption that you
Column (1)—Enter the name of the
Enter the column (5) total on line 3b,
participate in or cooperate with the
country that requires participation in or
Schedule C (Form 5713).
boycott unless you rebut the
cooperation with an international
Column (6)—An IC-DISC’s taxable
presumption as explained in the
boycott as a condition of doing
income attributable to boycott
instructions for “Boycott operations”
business in that country. The country
participation or cooperation is not
below. The presumption applies to all
named in column (1) is not necessarily
eligible for deferral.
of your operations, and those of each
the country where you have
If you are a shareholder in an
member of any controlled groups
operations. For example, if you have
IC-DISC, follow these steps for each
(defined in section 993(a)(3)) to which
operations in Country Z that is not a
boycott operation and enter the result
you belong, in each country that helps
boycotting country and the operation
in column (6): Add the amount
carry out the boycott.
relates to Country X that is a
deemed distributed for the tax year
boycotting country, enter the name of
Certain shareholders—IC-DISC
under section 995(b)(1)(A), (B), (C), (D),
Country X in column (1). See General
benefits, certain FSC benefits, the
and (E). Subtract that total from the
Instruction B on page 1 of the
“deemed paid” foreign tax credit
IC-DISC’s taxable income attributable
Instructions for Form 5713 for a list of
under section 902, and the deferral of
to the boycott operation for the tax
boycotting countries.
subpart F income are lost at the
year, before reduction for any
shareholder level. Shareholders in an
Column (2)—Enter the principal
distributions. If you are a C
IC-DISC, certain FSCs, or a foreign
business activity code of the boycott
corporation, prorate your share of the
corporation must report their prorated
operation. Page 4 of the Instructions
remainder and multiply by 16/17. If
share of the tax benefits denied. The
for Form 5713 lists the codes.
you are not a C corporation, prorate
denial of these benefits is discussed in
Column (3)—Briefly describe the
your share of the remainder. Enter the
the specific instructions for columns
principal business activity of the
result in column (6). Enter the column
(4) through (7).
boycott operation.
(6) total on line 4b, Schedule C (Form
Boycott operations—All of your
5713).
IC-DISCs—Enter the major product
operations in a boycotting country are
code and description in parentheses.
Column (7)—A FSC’s taxable income
considered to be boycott operations,
The Instructions for Schedule N of
attributable to boycott participation or
unless you rebut the presumption of
Form 1120-IC-DISC, list the codes.
cooperation is not eligible for
participation in or cooperation with the
exemption from income tax. Enter in
Column (4)—Enter the foreign taxes
boycott, as explained below. In
column (7) the amount of taxable
paid, accrued, or deemed paid that
addition, your operations that are not
income attributable to foreign trade
are attributable to the boycott
in a boycotting country are boycott
income of a FSC for each boycott
operation. These taxes are not eligible
operations if they are connected to
operation that would have been
for the foreign tax credit. Omit foreign
your participation in or cooperation
exempt if there had not been boycott
taxes otherwise disallowed under
with the boycott.
participation or cooperation.
sections 901 through 907, 911, and
You can rebut the presumption of
6038. For more information see Part N
Enter the column (7) total on line 5b,
participation in or cooperation with a
of the Treasury Department’s
Schedule C (Form 5713).
boycott for a particular operation by
International Boycott Guidelines.
demonstrating that the operation is
separate from any participation in or
cooperation with an international
boycott. The presumption applies only
to operations in countries that carry
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