SCHEDULE B Specifically Attributable Taxes

(Form 5713) and Income (Section 999(c)(2)) OMB No. 1545-0216
(Rev. January 1985) (To be completed only by persons not computing loss of tax benefits Expires 7-31-87
Department of the Treasury by the international boycott factor on Schedule A (Form 5713).)
Internal Revenue Service > Attach to Form 5713. |» Seeinstructions on back.
Name Taxpayer identifying number
Name of country being boycotted. . ._. C1 Israel (1 Other (identify) >
Specifically Attributable Taxes and Income by Operation (Use a separate line for each operation)
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Name of country
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Ifyou 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.


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 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 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.—DISC benefits,
the ‘‘deemed paid”’ tax credit under section
902, and the deferral of subpart F income
are lost at the shareholder level.
Shareholders in a DISC ora 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), (5)
and (6).

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 coperation 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.

DISCs.—For each boycott operation
enter the product code and description in
parentheses. The Instructions for Schedule
N (Form 1120-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,
1503(b), or 6038. For more information see
Part N of the Treasury Department's
International Boycott Guidelines.

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

Column (6).—A DISC's taxable income
attributable to boycott operations is not
eligible for deferral. If you are a shareholder
ina 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 DISC’s taxable income attributable to
the boycott operation for the tax year,
before reduction for any distributions.
Prorate your share of the remainder and
divide by 2. Enter the result in column (6).
The DISC’s taxable income attributable to
the boycott operation is its gross income
from the operation minus the deductions
allocable to it. Enter the column (6) total on
line 4(b), Schedule C (Form 5713).