SCHEDULE A Computation of the International
(Form 5713) Boycott Factor (Section 999(c)(1))

(Rev. June 1988) OMB No. 1545-0216

(To be completed only by persons not computing loss of tax benefits by the Expires 06-30-91
specifically attributable taxes and income method on Schedule B (Form 5713).)

Department of the Treasury
Internal Revenue Service > Attach to Form 5713. > _See instructions on back.
Name Taxpayer identifying number
Name of country being boycotted (check one):
O srael C1 _ Other (identify) >
Name of Purchases, sales, and payroll attributable to boycotting operations, by operation
country
Boycott purchases Boycott sales Boycott payroll
c?) @ () a
a
b
c
d
e
f
g
h
i
i
k
I
m
n
°
Totals .
1 Numerator of boycott factor (add totals of columns (2), (3), and (4)) —
2 Denominator of boycott factor: 7M
a Total purchases from countries other than United States _
Yff ]/ Yi
YY} | yf)
b Total sales to or from countries other than United States oo _ __
¢ Total payroll paid or accrued for services performed in countries other Y Y YY _
than United States . MMMM
d= Totaloflines2a,b,andc. . 6 ww ee
3 International boycott factor (divide line 1 by line 2d). Enter here and on Schedule C (Form 5713) (see
instructions), . . . . . . oa we

Ifyou are involved in more than one boycott, use a separate Schedule A for each boycott and attach to Form 5713.
For Paperwork Reduction Act Notice, see page 1 of the Instructions for Form 5713. Schedule A (Form 5713)(Rev. 6-88)



‘Schedule A (Form 5713) (Rev. 6-88)

Page 2

General Instructions
(References are to the Internal Revenue Code.)

A. Purpose.—Complete Schedule
A (Form 5713) if you cooperated with
or participated in an international
boycott. Use the international boycott
factor to figure the loss of tax benefits.
\f you do not use the international
boycott factor for this purpose, you
must specifically attribute taxes and
income on Schedule B (Form 5713).

B. Who Must File.-—Anyone who
cooperates with or participates in an
international boycott must file either
this form or Schedule B (Form 5713) to
figure the loss of tax benefits. One act
of cooperation or participation creates
the presumption that you cooperate
with or participate in the boycott unless
you rebut the presumption as explained
in instruction C. The presumption
applies to all your operations and those
of each member of any controlled
groups (defined in section 993(a)(3)) to
which you belong, in each country that
helps carry out the boycott.

C. Boycott Operations.—All your
operations in a boycotting country are
considered to be boycott operations,
unless you rebut the presumption of
cooperating with or participating in the
boycott, as explained below. In
addition, your operations that are not in
a boycotting country are boycott
operations if they are connected to your
cooperation with or participation in the
boycott.

You can rebut the presumption of
cooperating with or participating in a
boycctt for a particular operation by
demonstrating that that operation is
separate from any cooperation with or
participation in an international
boycott. The presumption applies only
to operations in countries that carry out
the boycott, so you do not need to rebut
the presumption for operations that are
related to those countries, but that take
place outside them.

D. International Boycott Factor.—
Your international boycott factor
reflects boycott purchases, boycott
sales, and boycott payroll.

1. Controlled Groups.—All
members of a controlled group

generally share one international
boycott factor, which reflects all their
purchases, sales, and payroll. If you,
however, belong to two or more
controiled groups, your international
boycott factor will reflect the
purchases, sales, and payroll of all the
controlled groups to which you belong.

2. Partnerships and Trusts.—You
are deemed to have a prorated share of
the purchases, sales, and payroll of
each partnership in which you are a
partner and of each trust of which you
are treated as the owner under section
671. Thus, your international boycott
factor may also reflect purchases,
sales, and payroll of partnerships and
trusts.

Specific Instructions

Compute a separate boycott factor
and fill out a separate schedule for
each international boycott with which
you cooperate or participate. Include
your own operations and, if applicable,
the operations of partnerships, trusts,
and members of your controlled group.

To decide for what years you should
report purchases, sales, and payroll for
partnerships, trusts, and controlled
groups, see the specific instructions for
questions 7-13 of Form 5713.

Partnerships.—For a partnership,
complete only lines a through o, the
totals of columns (2), (3), and (4), and
line 2. Give this information to all
partners so they can compute their own
international boycott factor.

Column (1).—For each boycott
operation enter the name of the
country to which your international
boycott operation relates. For example,
if you have an operation in Country Z,
which is not a boycotting country, and
the operation relates to Country X,
which is a boycotting country, enter the
name of Country X. The Secretary
maintains a list, under section
999(a)(3), of countries that require
cooperation with an international
boycott. This list may not be all-
inclusive.

Column (2).—For each boycott
operation enter all purchases that are
attributable to that operation and are
made from boycotting countries.

Column (3).—For each boycott
operation enter the sales that are
attributable to that operation and are
made to or from boycotting countries.

Column (4).—For each boycott
operation enter the total payroll that is
attributable to that operation and is
paid or accrued for services performed
in boycotting countries.

Line 1.—Add columns (2), (3), and
(4). The numerator of your
international boycott factor includes all
of the following.

(i) Purchases you made from
boycotting countries.

(ii) Sales you made to or from
boycotting countries.

(iii) Payroll you paid or accrued for
services performed in
boycotting countries.

Do not include amounts attributable to
operations for which you rebutted the
presumption of cooperating with or
participating in the boycott.

Line 2.—The denominator of your
international boycott factor reflects all
your purchases, sales, and payroll in or
related to all countries other than the
United States. If applicable, the
denominator also reflects these items
for your controlled groups,
partnerships, and trusts. Include here
the amounts that are attributable to
operations for which you rebutted the
presumption of cooperating with or
participating in the boycott.

Line 3.—Enter the international
boycott factor from line 3 of this form
on the appropriate line of Schedule C
(Form 5713) as follows:

If you reduce your foreign tax credit
(section 908(a)), enter the
international boycott factor on line
2a(2) of Schedule C.

If you are denied a tax deferral on
subpart F income (section 952(a)(3)),
enter the international boycott factor
on line 3a(4) of Schedule C.

If you are denied a tax deferral on
IC-DISC income (section 995(b)(1)(F)),
enter the international boycott factor
on line 4a(2) of Schedule C.

If you are denied an exemption of
foreign trade income of a FSC (section
927(e)(2)), enter the international
boycott factor on line 5a(2) of
Schedule C.