SCHEDULE A International

Form 5713} .
‘ ) Boycott Factor (Section 999(c)(1)) OMB No. 1545-0216
(Rev. May 1991) Complete only if you are not computing a loss of tax benefits using the specifically Expires 4-30-94
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 Identifying number

Name of country being boycotted (check one): O Israel O Other (identify) >

Name of Purchases, sales, and payroll attributable to boycotting operations, by operation
country
mi Boycott purchases Boycott sales Boycott payroll
@) @ )
a
b
c
d
e
ft
9g
h
i
i
k
1
m
n
oO
Totals
1 Numerator of boycott factor (add totals of columns (2), (3), and (4)) .
2 Denominator of boycott factor:
a Total purchases from countries other than United States
b Total sales to or from countries other than United States
¢ Total payroll paid or accrued for services performed in countries other
than United States

d Total of lines 2a, b, andc . oe
3 International boycott factor (divide line 4 by line 2d). Enter here and o on Schedule Cc (Form 5719)
(see instructions) .
If you are involved in more than ¢ one Boycott, use @ @ separate ‘Schedule A for ‘each boycott and atch to Form 5713.

For Paperwork Reduction Act Notice, see page 1 of the Instructions for Form 5713. Cat. No. 12050W Schedule A (Form 5713) (Rev. 5-91)



Schedule A (Form 5713) (Rev. 5-91)

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.
If 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 D. 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. When and Where To File.— Attach
Schedule A to Form 5713 and file in
duplicate by the due date of the return
including extensions. Send one copy
to the Internal Revenue Service
Center, Philadelphia, PA 19255, and
attach a copy to your income tax
return.

D. 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
cooperation with or participation in a
boycott 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. You do not need to
rebut the presumption for operations
that are related to those countries, but
that take place outside of those
countries,

E. 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. However, if you belong to two
or more controlled 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 if you are
treated as the owner under section
671. As a result, your international
boycott factor may also reflect
purchases, sales, and payroll of
partnerships and trusts.

Specific Instructions

Compute a separate boycott factor
and a separate schedule for each
international boycott you cooperated
with or participated in. Include your
own operations and, if applicable, the
operations of partnerships, trusts, and
members of your controlled group.
See the specific instructions for
questions 7-13 of Form 5713 to see
what years you should report
purchases, sales, and payroll for
partnerships, trusts, and controlled
groups.
Partnerships.—For a partnership,
complete only lines a through 0, the
total 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
attributable to that operation that was
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.

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

(ii) 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 the
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.—Partnerships and IC-DISCs
do not enter the amount from line 3
on Schedule C. All others 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.

*U.S. Government Printing Office: 1901 — 623-713/40122