SCHEDULE B Specifically Attributable Taxes
(Form 5713) and Income (Section 999(c)(2))

(Rev. May 1991) . . 7 OMB No. 1545-0216
(Rev. May 1994) (Complete only if you are not computing a loss of tax benefits Expires: 4-30-94

using the international boycott factor on Schedule A (Form 5713).)

Department of the Treasury
Internal Revenue Service > Attach to Form 5713. __> See instructions on back.

Name Identifying number

Name of country being boycotted . . CI Israel 0 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

Foreign taxes | Prorated share of | Taxable income | Taxable income
Code Description attributable to international attributable to. attributable to.
boycott operations | boycott income | boycott operations | boycott operations

() @) (3) (4) 6) (6) @

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. Cat. No. 120608 Schedule B (Form 5713) (Rev. 5-91)



Schedule B (Form 5713) (Rev. 5-91)

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 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
instruction D. 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.

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 is discussed in
the specific instructions for columns
(4) through (7).

C. When and Where To File.—Attach
Schedule B to Form 5713 and file in
duplicate by the due date of the return
including extensions. Send one copy
to the Internal Revenue Service
Center, Philadelphia, PA 19255, and
attach a copy to your income tax
return.

D. 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.

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
of those countries.

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.

IC-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 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
901-907, 911, and 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).—Enter your prorated
share of the controlled foreign
corporation’s income for each boycott
operation that is attributable to
boycott participation or cooperation.
(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
(6), 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 !C-DISC’s taxable
income attributable to boycott
participation or cooperation 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 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).

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).

US. GOVERNMENT PRINTING OFFICE: 1991 0866-065,