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Schedule B (Form 5713) (Rev. 9-2018) Page 2
Future Developments in each country that helpscarry out Enter the column (4) total on
the boycott. Schedule C (Form 5713), line 2b.
For the latest information about You can rebut the presumption of Column (5). Enter your prorated share
developments related to Schedule B participation in or cooperation with a of the controlled foreign corporation’s
(Form 5713) and its instructions, such boycott for a particular operation by income that is attributable to the
as legislation enacted after they were demonstrating that the operation is boycott operation. (This includes your
published, go to www.irs.gov/forms- separate from any participation in or share of the nonexempt income of an
pubs/about-schedule-b-form-5713. cooperation with an international FSC. See section 923(a)(2), as in effect
General Instructions boycott. The presumption applies only before its repeal.) This amount is not
to operations in countries that carry eligible for tax deferral. Omit the
Section references are to the Internal out the boycott. Therefore, you do not foreign corporation’s income
Revenue Code unless otherwise noted. need to rebut the presumption for attributable to earnings and profits
Who Must File operations that are related to those that are included in gross income
countries if the operations take place under section 951 (except by reason
Complete Schedule B (Form 5713) if: outside of those countries. of section 952(a)(3)). Also omit
• You participated in or cooperated amounts excluded from subpart F
with an international boycott, and Specific Instructions income by section 952(b). In figuring
• You figure the loss of tax benefits by File Schedule B (Form 5713) for the the amount to enter in column (5), you
specifically attributing taxes and period covered by your income tax are allowed a reasonable amount for
income. return. Report only your own taxes deductions (including foreign taxes)
If you do not specifically attribute and income; do not include the taxes allocable to that income.
taxes and income for this purpose, and income of other members of any Enter the column (5) total on
you must compute the international controlled groups to which you Schedule C (Form 5713), line 3b.
boycott factor on Schedule A (Form belong.
Column (6). An IC-DISC’s taxable
5713). Columns (1) Through (7) income attributable to boycott
Do not use Schedule B (Form 5713) participation or cooperation is not
to figure the reduction to foreign trade In completing columns (1) through (7),
income qualifying for the show all specifically identifiable taxes eligible for deferral.
extraterritorial income exclusion. and income in each appropriate If you are a shareholder in an IC-
Instead, use Schedule A (Form 5713). column from one operation on one DISC, follow these steps for each
line. boycott operation and enter the result
Certain shareholders. IC-DISC in column (6).
benefits, certain FSC benefits, the Column (1). Enter the name of the
“deemed paid” foreign tax credit under country that requires participation in or 1. Determine the portion of the
section 902 (with respect to dividends cooperation with an international amount on Form 1120-IC-DISC,
paid in pre-2018 tax years of foreign boycott as a condition of doing Schedule J, Part I, line 7, that is
corporations) and section 960, and the business in that country. The country attributable to the boycott operation.
deferral ofsubpart F income are lost at named in column (1) is not necessarily 2. Subtract that amount from the
theshareholder level. Shareholders in the country where you have IC-DISC’s taxable income attributable
anIC-DISC, certain FSCs, or a foreign operations. For example, if you have to the boycott operation for the tax
corporation must report their prorated operations in Country Z that is not a year, before reduction for any
share of the tax benefits denied. The boycotting country and the operation distributions.
denial of these benefits is discussed in relates to Country X that is a 3. If you are a C corporation,
the specific instructions for columns boycotting country, enter the name of determine your pro rata share of the
(4) through (7). Country X in column (1). See the remainder and multiply that amount by
Instructions for Form 5713 for alist of 16/17. If you are not a C corporation,
Boycott Operations boycotting countries. determine your pro rata share of the
All of your operations in a boycotting Column (2). Enter the principal remainder.
country are considered to be boycott business activity code of the boycott 4. Enter the result in column (6).
operations, unless you rebut the operation from the list in the Enter the column (6) total on
presumption of participation in or Instructions forForm 5713. Schedule C (Form 5713), line 4b.
cooperation with the boycott (as Column (3). Briefly describe the Column (7). An FSC’s taxable income
explained below). In addition, your principal business activity of the attributable to boycott participation or
operations that are not in a boycotting boycott operation. For IC-DISCs, enter cooperation is not eligible for
country are boycott operations if they the major product code and exemption from income tax. Enter in
are connected to your participation in description in parentheses. See the column (7) the taxable income
or cooperation with the boycott. Instructions for Schedule N ofForm attributable to foreign trade income of
Rebutting the presumption of 1120-IC-DISC for a list of thecodes. an FSC for each boycott operation
boycott participation or Column (4). Enter the foreign taxes that would have been exempt had
cooperation. One act of participation paid, accrued, or deemed paid that therenot been boycott participation or
or cooperationcreates the are attributable to the boycott cooperation.
presumption that youparticipate in or operation. These taxes are not eligible Enter the column (7) total on
cooperate with theboycott unless you for the foreign tax credit. Omit foreign Schedule C (Form 5713), line 5b.
rebut thepresumption. The taxes otherwise disallowed under
presumption appliesto all of your sections 901 through 907, 911, and
operations and those ofeach member 6038. For more information, seePart N
of any controlled groups(defined in of the Treasury Department’s
section 993(a)(3)) to whichyou belong, International Boycott Guidelines.
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