Specifically Attributable Taxes

and Income (Section 999(c)(2))

SCHEDULE B

(Form 5713)

(Rev. January 1997) OMB No. 1545-0216

Department of the Treasury

Internal Revenue Service © Attach to Form 5713. © See instructions on back.

Name Identifying number

Name of country being boycotted Israel Other (identify) ©

Specifically Attributable Taxes and Income by Operation (Use a separate line for each operation.)

Name of country Principal business activity Foreign tax credit Subpart F income IC-DISC income FSC income

Taxable income

attributable to

boycott

operations

Taxable income

attributable to

boycott

operations

Prorated share of

international

boycott income

Foreign taxes

attributable to

boycott

operations

Code Description

(1) (2) (3) (4) (5) (6) (7)

a

b

c

d

e

f

g

h

i

j

k

l

m

n

o Total ©

If you are involved in more than one international boycott, use a separate Schedule B (Form 5713) to compute the specifically

attributable taxes and income for each boycott.

For Paperwork Reduction Act Notice, see page 1 of the instructions for Form 5713. Schedule B (Form 5713) (Rev. 1-97) Cat. No. 12060S

Complete only if you are not computing a loss of tax benefits

using the international boycott factor on Schedule A (Form 5713).
Schedule B (Form 5713) (Rev. 1-97) Page 2

Enter the column (4) total on line 2b,

Schedule C (Form 5713).

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

General Instructions

References are to the Internal

Revenue Code. Column (5)—Enter your prorated

share of the controlled foreign

corporation’s income that is

attributable to the boycott operation.

(This includes your share of the

section 923(a)(2) non-exempt income

of a FSC.) This amount is not eligible

for tax deferral. Omit the foreign

corporation’s income attributable to

earnings and profits that are included

in gross income under section 951

(except by reason of section 952(a)(3)).

Also omit amounts excluded from

subpart F income by section 952(b). In

figuring the amount to enter in column

(5), you are allowed a reasonable

amount for deductions (including

foreign taxes) allocable to that income.

Purpose—Complete Schedule B

(Form 5713) if you participated in or

cooperated with an international

boycott and if you figure the loss of

tax benefits by specifically attributing

taxes and income. If you do not

specifically attribute taxes and income

for this purpose, you must compute

the international boycott factor on

Schedule A (Form 5713).

Who must file—Anyone who

participates in or cooperates with an

international boycott must file either

this schedule or Schedule A (Form

5713) to figure the loss of tax benefits.

One act of participation or cooperation

creates the presumption that you

participate in or cooperate with the

boycott unless you rebut the

presumption as explained in the

instructions for “Boycott operations”

below. The presumption applies to all

of 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.

Specific Instructions

File Schedule B (Form 5713) for the

period covered by your income tax

return. Report only your own taxes

and income; do not include other

members of any controlled groups to

which you belong.

Enter the column (5) total on line 3b,

Schedule C (Form 5713).

Complete columns (1) through (7) in

the following manner:

Column (6)—An IC-DISC’s taxable

income attributable to boycott

participation or cooperation is not

eligible for deferral.

Certain shareholders—IC-DISC

benefits, certain FSC benefits, the

“deemed paid” foreign tax credit

under section 902, and the deferral of

subpart F income are lost at the

shareholder level. Shareholders in an

IC-DISC, certain FSCs, or a foreign

corporation must report their prorated

share of the tax benefits denied. The

denial of these benefits is discussed in

the specific instructions for columns

(4) through (7).

Column (2)—Enter the principal

business activity code of the boycott

operation. Page 4 of the Instructions

for Form 5713 lists the codes.

Column (3)—Briefly describe the

principal business activity of the

boycott operation.

IC-DISCs—Enter the major product

code and description in parentheses.

The Instructions for Schedule N of

Form 1120-IC-DISC, list the codes.

Column (7)—A FSC’s taxable income

attributable to boycott participation or

cooperation is not eligible for

exemption from income tax. Enter in

column (7) the amount of taxable

income attributable to foreign trade

income of a FSC for each boycott

operation that would have been

exempt if there had not been boycott

participation or cooperation.

Column (4)—Enter the foreign taxes

paid, accrued, or deemed paid that

are attributable to the boycott

operation. These taxes are not eligible

for the foreign tax credit. Omit foreign

taxes otherwise disallowed under

sections 901 through 907, 911, and

6038. For more information see Part N

of the Treasury Department’s

International Boycott Guidelines.

Boycott operations—All of your

operations in a boycotting country are

considered to be boycott operations,

unless you rebut the presumption of

participation in or cooperation 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.

Enter the column (7) total on line 5b,

Schedule C (Form 5713).

If you are a shareholder in an

IC-DISC, follow these steps for each

boycott operation and enter the result

in column (6): Add the amount

deemed distributed for the tax year

under section 995(b)(1)(A), (B), (C), (D),

and (E). Subtract that total from the

IC-DISC’s taxable income attributable

to the boycott operation for the tax

year, before reduction for any

distributions. If you are a C

corporation, prorate your share of the

remainder and multiply by 16/17. If

you are not a C corporation, prorate

your share of the remainder. Enter the

result in column (6). Enter the column

(6) total on line 4b, Schedule C (Form

5713).

Show all specifically identifiable

taxes and income in each appropriate

column from one operation on one

line.

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 where you have

operations. For example, if you have

operations 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). See General

Instruction B on page 1 of the

Instructions for Form 5713 for a list of

boycotting countries.

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

of those countries.