SCHEDULE C 

(Form 5713) 

(Rev. December 2010) 

Department of the Treasury 

Internal Revenue Service 

Tax Effect of the International Boycott Provisions 

▶ Attach to Form 5713. 

▶ See instructions on page 2.

OMB No. 1545-0216 

Name Identifying number 

1 Method used to compute loss of tax benefits (check one): 

a International boycott factor from Schedule A (Form 5713). See lines 2a, 3a, 4a, and 5a below . . . . . . . . . ▶

b Identification of specifically attributable taxes and income from Schedule B (Form 5713). See lines 2b, 3b, 4b, and 5b 

below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

2 Reduction of foreign tax credit (section 908(a)): 

a International boycott factor. Complete if you checked box 1a above and answered “Yes” to the 

question on line 7d, Form 5713. 

(1) Foreign tax credit before adjustment from Form 1116 or 1118 (see instructions) . . . . . .

(2) International boycott factor from Schedule A (Form 5713), line 3 . . . . . . . . . . .

(3) Reduction of foreign tax credit. Multiply line 2a(1) by line 2a(2). Enter here and on Form 1116 or 

1118 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Adjusted foreign tax credit. Subtract line 2a(3) from line 2a(1) . . . . . . . . . . . .

b Specifically attributable taxes and income. Complete if you checked box 1b above and answered 

“Yes” to the question on line 7d, Form 5713. Enter the amount from line o, column (4), Schedule B 

(Form 5713) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the appropriate part of this amount on Form 1116 or 1118 (see instructions). 

3 Denial of deferral under subpart F (section 952(a)(3)): 

a International boycott factor. Complete if you checked box 1a above and answered ‘‘Yes’’ to the 

question on line 7b, Form 5713. 

(1) Prorated share of total income of controlled foreign corporations (see instructions) . . . . .

(2) Prorated share of income attributable to earnings and profits of controlled foreign corporations 

included in income under sections 951(a)(1)(A)(ii), 951(a)(1)(A)(iii), 951(a)(1)(B), 952(a)(1), 

952(a)(2), 952(a)(4), 952(a)(5), and 952(b) . . . . . . . . . . . . . . . . . . .

(3) Subtract line 3a(2) from line 3a(1) . . . . . . . . . . . . . . . . . . . . .

(4) International boycott factor from Schedule A (Form 5713), line 3 . . . . . . . . . . .

(5) Prorated share of subpart F international boycott income. Multiply line 3a(3) by line 3a(4). Enter 

here and on line 22 of Worksheet A in the Form 5471 instructions . . . . . . . . . .

b Specifically attributable taxes and income. Complete if you checked box 1b above and answered 

“Yes” to the question on line 7b, Form 5713. Enter the amount from line o, column (5), Schedule B 

(Form 5713) here and on line 22 of Worksheet A in the Form 5471 instructions . . . . . . . .

4 Denial of IC-DISC benefits (section 995(b)(1)(F)(ii)): 

a International boycott factor. Complete if you checked box 1a above and answered “Yes” to the 

question on line 7c, Form 5713. 

(1) Prorated share of section 995(b)(1)(F)(i) amount (see instructions) . . . . . . . . . . .

(2) International boycott factor from Schedule A (Form 5713), line 3 . . . . . . . . . . .

(3) Prorated share of IC-DISC international boycott income. Multiply line 4a(1) by line 4a(2). Enter this

amount here and the IC-DISC will include it on line 10, Part I, Schedule J, Form 1120-IC-DISC . .

b Specifically attributable taxes and income. Complete if you checked box 1b above and answered 

“Yes” to the question on line 7c, Form 5713. Enter the amount from line o, column (6), Schedule B 

(Form 5713) here and the IC-DISC will include it on line 10, Part I, Schedule J, Form 1120-IC-DISC 

5 Denial of exemption of foreign trade income (section 927(e)(2), as in effect before its repeal): 

a International boycott factor. Complete if you checked box 1a above and answered “Yes” to the 

question on line 7i, Form 5713. 

(1) Add amounts from columns (a) and (b), line 10, Schedule B (Form 1120-FSC) . . . . . .

(2) International boycott factor from Schedule A (Form 5713), line 3 . . . . . . . . . . .

(3) Exempt foreign trade income of a FSC attributable to international boycott operations. Multiply 

line 5a(1) by line 5a(2). Enter here and on line 2, Schedule F, Form 1120-FSC . . . . . . .

b Specifically attributable taxes and income. Complete if you checked box 1b above and answered 

“Yes” to the question on line 7i, Form 5713. Enter the amount from line o, column (7), Schedule B 

(Form 5713) here and on line 2, Schedule F, Form 1120-FSC . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see Instructions for Form 5713. Cat. No. 12070O Schedule C (Form 5713) (Rev. 12-2010) 
Schedule C (Form 5713) (Rev. 12-2010) Page 2 

6 Reduction of foreign trade income qualifying for the extraterritorial income exclusion. Complete if you

answered “Yes” to the question on line 7j, Form 5713. 

a Enter amount from line 49 of Form 8873 . . . . . . . . . . . . . . . . . . . . .

b International boycott factor from Schedule A (Form 5713), line 3 . . . . . . . . . . . . .

c Reduction of qualifying foreign trade income. Multiply line 6a by 6b. Enter here and on Form 8873, 

line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instructions 

Section references are to the Internal 

Revenue Code unless otherwise 

noted. 

Purpose of Form 

Schedule C (Form 5713) is used to 

compute the loss of tax benefits 

attributable to participation in or 

cooperation with an international 

boycott. 

Who Must File 

Complete Schedule C (Form 5713) if 

you completed either Schedule A or 

Schedule B of Form 5713. 

Partnerships. Each partner must 

complete a separate Schedule C 

(Form 5713). Partnerships do not 

complete Schedule C (Form 5713). 

Controlled groups. Unless a 

controlled group (described in section 

993(a)(3)) files a consolidated return, 

each member may independently 

choose to either (a) apply the 

international boycott factor under 

section 999(c)(1) or (b) identify 

specifically attributable taxes and 

income under section 999(c)(2). Each 

member must consistently use a 

single method to figure the loss of tax 

benefits. 

Example. A member that chooses 

to use the international boycott factor 

must apply it to determine its loss of 

the section 902 indirect foreign tax 

credit on a dividend that another 

member of the controlled group paid 

to it, even if the other member 

determines its own loss of tax benefits 

by identifying specifically attributable 

taxes and income. 

Other Requirements 

• A person who applies the 

international boycott factor to one 

operation must apply the factor to all 

that tax year’s operations under 

section 908(a), 952(a)(3), 995(b)(1)(F)(ii), 

or 927(e)(2). 

• A person who identifies specifically 

attributable taxes and income under 

section 999(c)(2) must use that 

method for all that tax year’s 

operations under section 908(a), 

952(a)(3), 995(b)(1)(F)(ii), or 927(e)(2). 

• An IC-DISC whose tax year differs 

from the common tax year of the 

controlled group of which it is a 

member does not need to amend its 

return to show on Schedule J (Form 

1120-IC-DISC) the amount of IC-DISC 

benefits lost because of boycott 

participation. Because the IC-DISC 

benefits are lost at the shareholder 

level, the shareholder must include in 

income the prorated share of income 

attributable to boycott operations 

shown on line 4a(3). 

• A person excluding extraterritorial 

income must reduce qualifying foreign 

trade income using the international 

boycott factor computed on 

Schedule A. 

Lines 2 through 6 

Note. All line references are to 2010 

forms unless otherwise noted. 

Line 2a(1). Enter the foreign tax credit 

before adjustment from Form 1116 or 

1118. Individual filers, enter the 

amount from line 27, Part IV, of Form 

1116. Corporate filers, enter the 

amount from line 4, Part III, Schedule 

B, of Form 1118. 

Line 2a(3). Enter the reduction of 

foreign tax credit from this line on 

either Form 1116 or 1118. Individual 

filers, enter this amount on line 28, 

Part IV, of Form 1116. Corporate filers, 

enter this amount on line 5, Part III, 

Schedule B, of Form 1118. 

Line 2b. Enter the reduction of foreign 

taxes available for credit from this line 

on Form 1116 or 1118. Individual 

filers, include this amount on line 12, 

Part III, of Form 1116. Corporations, 

enter this amount on line C, Schedule 

G, of Form 1118. 

Line 3a(1). Enter your share of the 

income of the controlled foreign 

corporation on line 3a(1). 

Nonexempt foreign trade income of 

a foreign sales corporation (FSC) that 

was computed without regard to the 

administrative pricing rules is subject 

to the subpart F rules. Include your 

share of these types of income on line 

3a(1). 

Line 4a(1). Enter your pro rata share 

of section 995(b)(1)(F)(i) amount on 

line 4a(1) as follows: 

• Shareholder that is not a C 

corporation. Enter your pro rata 

share of line 8, Part I, Schedule J, 

Form 1120-IC-DISC. 

• Shareholder that is a C 

corporation. Enter your pro rata 

share of line 8, Part I, Schedule J, 

Form 1120-IC-DISC, multiplied by 

16/17. 

Schedule C (Form 5713) (Rev. 12-2010)