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Schedule A (Form 5713) (Rev. 12-2010) Page 2
General Instructions international boycott factor, which Column (2). Enter all purchases that
reflects all their purchases, sales, and are made from boycotting countries
References are to the Internal Revenue payroll. However, if you belong to two that are attributable to the operation
Code. or more controlled groups, your reported on each line.
international boycott factor will reflect Column (3). Enter the sales that are
Who Must File the purchases, sales, and payroll of all made to or from boycotting countries
Complete Schedule A (Form 5713) if: the controlled groups to which you and that are attributable to the
• You participated in or cooperated belong. operation reported on each line.
with an international boycott and Partnerships and trusts. You are Column (4). Enter the total payroll that
• You are using the international deemed to have a prorated share of was paid or accrued for services
boycott factor to figure the loss of tax the purchases, sales, and payroll of performed in boycotting countries and
benefits. each partnership in which you are a that are attributable to the operation
You must use the international partner and of each trust of which you reported on each line.
boycott factor to figure the reduction are treated as the owner under section
to foreign trade income qualifying for 671. As a result, your international Lines 1 Through 3
the extraterritorial income exclusion. boycott factor may also reflect Line 1. Add the totals of columns (2),
To figure the loss of all other purchases, sales, and payroll of (3), and (4). This amount is the
applicable tax benefits, you may either partnerships or trusts. numerator of your international
boycott factor.
use the international boycott factor or Specific Instructions
you may specifically attribute taxes Do not include amounts attributable
and income by operation on Schedule Compute a separate boycott factor to operations for which you rebutted
B (Form 5713). and a separate schedule for each the presumption of participating in or
international boycott you participated cooperating with the boycott.
Boycott Operations in or cooperated with. Include your Line 2. The denominator of the
All your operations in a boycotting own operations and, if applicable, the international boycott factor reflects all
country are considered to be boycott operations of partnerships, trusts, and your purchases, sales, and payroll in
operations, unless you rebut the members of your controlled group. or related to all countries other than
presumption of participating in or See the instructions for lines 8 the United States. If applicable, the
cooperating with the boycott (as through 13, in the Instructions for denominator also reflects these items
explained below). In addition, your Form 5713, to determine the years for for your controlled groups,
operations that are not in a boycotting which you should report purchases, partnerships, and trusts. Include the
country are boycott operations if they sales, and payroll for partnerships, amounts that are attributable to
are connected to your participation in trusts, and controlled groups. operations for which you rebutted the
or cooperation with the boycott. presumption of participating in or
Columns (1) Through (4)
Rebutting the presumption of cooperating with the boycott.
boycott participation or In completing columns (1) through (4), Line 3. Enter the international boycott
cooperation. One act of participation show all boycott purchases, boycott factor from line 3 of this form on the
or cooperation creates the sales, and boycott payroll from one appropriate line of Schedule C
presumption that you participate in or operation on one line. (Form 5713) as follows.
cooperate with the boycott unless you Partnerships. Complete only lines a
rebut the presumption. The through o, the total of columns (2), (3), THEN enter the
presumption applies to all your and (4), and line 2. Do not complete international
operations and those of each member line 3. Give this information to all boycott factor
of any controlled groups (defined in partners so they can compute their IF you . . . on . . .
section 993(a)(3)) to which you belong, own international boycott factor. Are required to reduce Line 2a(2).
in each country that helps carry out Column (1). Enter the name of the your foreign tax credit,
the boycott. country that requires participation in or Are denied a tax deferral Line 3a(4).
You can rebut the presumption of cooperation with an international on subpart F income,
participation in or cooperation with a boycott as a condition of doing
boycott for a particular operation by business in that country. The country Are denied a tax deferral Line 4a(2).
demonstrating that the operation is named in column (1) is not necessarily on IC-DISC income,
separate from any participation in or the country in which the operation
cooperation with an international takes place. For example, if you have Are denied an exemption Line 5a(2).
boycott. The presumption applies only an operation in Country Z that is not a of foreign trade income of
a FSC,
to operations in countries that carry boycotting country and the operation
out the boycott. Therefore, you do not relates to Country X that is a Are required to reduce Line 6b.
need to rebut the presumption for boycotting country, enter the name of foreign trade income
operations that are related to those Country X in column (1). The Secretary qualifying for the
countries if the operations take place maintains a list, under section extraterritorial income
outside of those countries. 999(a)(3), of countries that require exclusion,
participation in or cooperation with an
International Boycott Factor international boycott. See the
Your international boycott factor Instructions for Form 5713 for the
reflects boycott purchases, boycott current list of boycotting countries.
sales, and boycott payroll.
Controlled groups. All members of a
controlled group generally share one
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