SCHEDULEB Specifically Attributable Taxes

(Form 5713) and Income (Section 999(c)(2)) (OMB No. 1545.0216
(Rev. January 1986) (To be completed only by persons not computing loss of tax benefits Expires 10-31-88
Department of the Treasury by the international boycott factor on Schedule A (Form 5713).)
Internal Revenue Service > Attach to Form 5713. > See instructions on back.
Name ‘Taxpayer identifying number
Name of country being boycotted . . . . U1 Israel C1 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 | SubpartF income | IC-DISC income FSC income
Foreign taxes | Proratedshareof | Taxableincome | Taxable income
Code Description attributable to international attributable to attributable to
boycott operations | boycott income | boycott operations | boycott operations
q@) (2) @ (4) (5) (6) @)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15 Total... . ee

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. 1-86)



Schedule B (Form 5713) (Rev. 1-86)

Page 2

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

A. 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).

B. Who Must File.—Anyone who
participates in or cooperates with an
international boycott must file either this
form or Schedule A (Form 57 13) 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 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.

Certain shareholders.—IC-DISC benefits,
certain FSC benefits, the ‘deemed paid" 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 are
discussed in the specific instructions for
columns (4) through (7).

C. Boycott Operations.—All 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.

You can rebut the presumption of
participation in or cooperation with a
boycott for a particular operation by
demonstrating that 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, so you
do not need to rebut the presumption for
operations that are related to those
countries, but that take place outside them.

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.

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, but this list may not
be all-inclusive.

Column (2).—For each boycott operation
enter the principal business activity code.
Page 4 of the Instructions for Form 5713
lists the codes.

Column (3).—For each boycott operation
briefly describe the principal business
activity.

1C-DISCs.—For each boycott operation
enter the product code and description in
parentheses. The Instructions for Schedule
N of Form 1120-IC-DISC, list the codes.

Column (4).—For each boycott operation
enter the foreign taxes that are paid,
accrued, or deemed paid and are
attributable to the boycott operation. These
taxes are not eligible for the foreign tax
credit. Omit foreign taxes otherwise
disallowed under sections 901-907, 911, or
6038. For more information see Part N of
the Treasury Department's International
Boycott Guidelines.

Enter the column (4) total on line 2b,
Schedule C (Form 5713).

Column (5).—For each boycott operation
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.

Enter the column (5) total on line 3b,
Schedule C (Form 5713).
Column (6).—An IC-DISC’s taxable income
attributable to boycott operations is not
eligible for deferral. 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
subparagraphs (A), (B), (C), (D), and (E) of
section 995(b)(1). Subtract this 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 corporation, prorate your share of the
remainder and multiply by 16/17. If you are
not a 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).
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 that would
have been exempt if there had not been
boycott participation or cooperation for
each boycott operation.

Enter the column (7) total on line 5b,
Schedule C (Form 5713).