Federal Specifically Attributable Taxes and Income (Section 999(c)(2))

Specifically Attributable Taxes and Income (Section 999(c)(2))
Form 5713 (Schedule B) (Rev. September 2018)
SCHEDULE B
(Form 5713)

Specifically Attributable Taxes
and Income (Section 999(c)(2))

(Rev. September 2018)

▶ Complete only if you are not computing a loss of tax benefits
using the international boycott factor on Schedule A (Form 5713).

Department of the Treasury
Internal Revenue Service

▶

OMB No. 1545-0216

▶ Attach to Form 5713.
▶ See instructions on page 2.
Go to www.irs.gov/forms-pubs/about-schedule-b-form-5713 for the latest information.

Identifying number

Name

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

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

Name of country

Code

Description

(1)

(2)

(3)

Foreign tax credit Subpart F income

IC-DISC income

FSC income

Foreign taxes
Prorated share of Taxable income
Taxable income
attributable to
international
attributable to
attributable to
boycott operations boycott income boycott operations boycott operations
(4)

(5)

(6)

(7)

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b

c
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For Paperwork Reduction Act Notice, see the Instructions for Form 5713.

Cat. No. 12060S

Schedule B (Form 5713) (Rev. 9-2018)

Schedule B (Form 5713) (Rev. 9-2018)

Future Developments
For the latest information about
developments related to Schedule B
(Form 5713) and its instructions, such
as legislation enacted after they were
published, go to www.irs.gov/formspubs/about-schedule-b-form-5713.

General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.

Who Must File
Complete Schedule B (Form 5713) if:
• 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).
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).
Certain shareholders. IC-DISC
benefits, certain FSC benefits, the
“deemed paid” foreign tax credit under
section 902 (with respect to dividends
paid in pre-2018 tax years of foreign
corporations) and section 960, 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).

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.
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,

Page

in each country that helps carry out
the boycott.
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
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.

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.

Columns (1) Through (7)
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 the
Instructions for Form 5713 for a list of
boycotting countries.
Column (2). Enter the principal
business activity code of the boycott
operation from the list in 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 (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.

2

Enter the column (4) total on
Schedule C (Form 5713), line 2b.
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 nonexempt income of an
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.
Enter the column (5) total on
Schedule C (Form 5713), line 3b.
Column (6). An IC-DISC’s taxable
income attributable to boycott
participation or cooperation is not
eligible for deferral.
If you are a shareholder in an ICDISC, follow these steps for each
boycott operation and enter the result
in column (6).
1. Determine the portion of the
amount on Form 1120-IC-DISC,
Schedule J, Part I, line 7, that is
attributable to the boycott operation.
2. Subtract that amount 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,
determine your pro rata share of the
remainder and multiply that amount by
16/17. If you are not a C corporation,
determine your pro rata share of the
remainder.
4. Enter the result in column (6).
Enter the column (6) total on
Schedule C (Form 5713), line 4b.
Column (7). An 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
an FSC for each boycott operation
that would have been exempt had
there not been boycott participation or
cooperation.
Enter the column (7) total on
Schedule C (Form 5713), line 5b.