Specifically Attributable Taxes

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

SCHEDULE B

(Form 5713)

(Rev. November 2001) OMB No. 1545-0216

Department of the Treasury

Internal Revenue Service  Attach to Form 5713.  See instructions on page 2.

Name Identifying number

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

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

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

Name of country

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 

Important: 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 the instructions for Form 5713. Schedule B (Form 5713) (Rev. 11-2001) 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. 11-2001) Page 2

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

Schedule C (Form 5713). General Instructions

Section references are to the Internal

Revenue Code unless otherwise noted. 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 non-exempt income of a

FSC. See section 923(a)(2), as in effect

before its repeal.) 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.

Who Must File

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 the taxes

and income of other members of any

controlled groups to which you

belong.

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

Schedule C (Form 5713).

Columns (1) through (7)

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 from the list beginning on

page 5 of the Instructions for Form

5713.

Column (3). Briefly describe the

principal business activity of the

boycott operation. For IC-DISCs, enter

the major product code and

description in parentheses. See the

Instructions for Schedule N of Form

1120-IC-DISC for a list of 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 taxable income

attributable to foreign trade income of

a FSC for each boycott operation that

would have been exempt had there

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.

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).

In completing columns (1) through (7),

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 page 2

of the Instructions for Form 5713 for a

list of boycotting countries.

Boycott Operations

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 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.

Complete Schedule B (Form 5713) if:

1. Add the amount deemed distributed

for the tax year under section

995(b)(1)(A), (B), (C), (D), and (E). 

2. Subtract that total from the

IC-DISC’s taxable income attributable

to the boycott operation for the tax

year, before reduction for any

distributions.

3. 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.

4. Enter the result in column (6).

● You participated in or cooperated

with an international boycott and

● 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).

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

Enter the column (6) total on line 4b,

Schedule C (Form 5713).

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.

Do not use Schedule B (Form 5713)

to figure the reduction to foreign trade

income qualifying for the

extraterritorial income exclusion.

Instead, use Schedule A (Form 5713).