International

Boycott Factor (Section 999(c)(1))

SCHEDULE A

(Form 5713)

(Rev. December 2004) Complete only if you are not computing a loss of tax benefits using the specifically

attributable taxes and income method on Schedule B (Form 5713) Department of the Treasury

Internal Revenue Service  Attach to Form 5713.

Name Identifyi

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

Purchases, sales, and payroll attributable to boycotting operations

Name of Country 

(1)

BBoycott sales

(3)

Boycott purchases

(2)

a

b

c

d

e

f

g

h

i

j

k

l

m

n

o

Total

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

c

d Total of lines 2a, b, and c

3 International boycott factor (divide line 1 by line 2d). Enter here and on Schedule C

(Form 5713) (see instructions) 

Important: If you are involved in more than one boycott, use a separate Schedule A for each boycott and attac

For Paperwork Reduction Act Notice, see the Instructions for Form 5713. Cat. No. 12050W Schedule A (Form 

 See instructions on page 2.
Schedule A (Form 5713) (Rev. 12-2004) 

Column (3). Enter the 

made to or from boyc

and that are attributab

operation reported on 

Controlled groups. All members of a

controlled group generally share one

General Instructions

References are to the Internal

Revenue Code.

Complete Schedule A (Form 5713) if:

Column (4). Enter the 

was paid or accrued f

performed in boycotti

that are attributable to 

reported on each line.

Line 1. Add the totals 

(3), and (4). This amou

numerator of your inte

boycott factor.

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. As a result, your international

boycott factor may also reflect

purchases, sales, and payroll of

partnerships or trusts.

Specific Instructions Do not include amo

to operations for whic

the presumption of pa

cooperating with the b

Compute a separate boycott factor

and a separate schedule for each

international boycott you participated

in or cooperated with. Include your

own operations and, if applicable, the

operations of partnerships, trusts, and

members of your controlled group.

Line 2. The denomina

international boycott f

your purchases, sales

or related to all count

the United States. If a

denominator also refle

for your controlled gro

partnerships, and trus

amounts that are attri

operations for which y

presumption of partic

cooperating with the b

See the instructions for lines 8

through 13, on page 3 of the

Instructions for Form 5713, to

determine the years for which you

should report purchases, sales, and

payroll for partnerships, trusts, and

controlled groups.

All your operations in a boycotting

country are considered to be boycott

operations, unless you rebut the

presumption of participating in or

cooperating with 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 participation in

or cooperation with the boycott.

Partnerships. Complete only lines a

through o, the total of columns (2), (3),

and (4), and line 2. Do not complete

line 3. Give this information to all

partners so they can compute their

own international boycott factor.

Line 3. Enter the inter

factor from line 3 of th

appropriate line of Sc

(Form 5713) as follow

Column (1). Enter the name of the

country that requires participation in or

cooperation with an international

boycott as a condition of doing

business in that country. The country

named in column (1) is not necessarily

the country in which the operation

takes place. For example, if you have

an operation in Country Z that is not a

boycotting country and the operation

relates to Country X that is a

boycotting country, enter the name of

Country X in column (1). The Secretary

maintains a list, under section

999(a)(3), of countries that require

participation in or cooperation with an

international boycott. See page 2 of

the Instructions for Form 5713 for the

current list of boycotting countries.

Rebutting the presumption of

boycott participation or cooperation.

One act of participation or cooperation

creates the presumption that you

participate in or cooperate with the

boycott unless you rebut the

presumption. 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.

Column (2). Enter all 

are made from boycot

that are attributable to 

reported on each line.

Your international boycott factor

reflects boycott purchases, boycott

sales, and boycott payroll.

In completing columns (1) through (4),

show all boycott purchases, boycott

sales, and boycott payroll from one

operation on one line.

Printed on recycled paper

You must use the international

boycott factor to figure the reduction

to foreign trade income qualifying for

the extraterritorial income exclusion. To

figure the loss of all other applicable

tax benefits, you may either use the

international boycott factor or you may

specifically attribute taxes and income

by operation on Schedule B

(Form 5713).

● You are using the international

boycott factor to figure the loss of tax

benefits. 

● You participated in or cooperated

with an international boycott and

Who Must File

Boycott Operations

You can rebut the presumption of

participation in or cooperation with a

boycott for a particular operation by

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

out the boycott. Therefore, you do not

need to rebut the presumption for

operations that are related to those

countries if the operations take place

outside of those countries.

International Boycott Factor

IF you . . .

Are required to

reduce your foreign

tax credit,

Are denied a tax

deferral on subpart F

income,

Are denied a tax

deferral on IC-DISC

income,

Are denied an

exemption of foreign

trade income of a

FSC,

Columns (1) Through (4)

Lines 1 Through 

Are required to

reduce foreign trade

income qualifying for

the extraterritorial

income exclusion,

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.