Form 5713 (Schedule C) — Tax Effect of the International Boycott Provisions

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/f5713sc.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

---

SCHEDULE C (Form 5713)

(Rev. September 2018) Department of the Treasury Internal Revenue Service

• Attach to Form 5713.

  • See instructions on page 2.

^▶ Go to www.irs.gov/forms-pubs/about-schedule-c-form-5713 for the latest information.

OMB No. 1545-0216

Name Identifying number

1 Method used to compute loss of tax benefits (check one):

a International boycott factor from Schedule A (Form 5713). See lines 2a, 3a, 4a, and 5a below . . . . . . . . . ▶ b Identification of specifically attributable taxes and income from Schedule B (Form 5713). See lines 2b, 3b, 4b, and 5b below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3
Denial of deferral under subpart F (section 952(a)(3)):
a International boycott factor.Complete if you checked box 1a above and answered ‘‘Yes’’ to the
question on line 7b, Form 5713.
(1)
Prorated share of total income of controlled foreign corporations (see instructions) .
.
.
.
.
(2)


Prorated share of income attributable to earnings and profits of controlled foreign corporations
included in income under sections 951(a)(1)(A), 951(a)(1)(B), 952(a)(1), 952(a)(2), 952(a)(4), 952(a)(5),
and 952(b) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(3)
Subtract line 3a(2) from line 3a(1)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(4)
International boycott factor from Schedule A (Form 5713), line 3 .
.
.
.
.
.
.
.
.
.
.
(5)
Prorated share of subpart F international boycott income. Multiply line 3a(3) by line 3a(4). Enter
here and on line 22 of Worksheet A in the Form 5471 instructions
.
.
.
.
.
.
.
.
.
.
**b Specifically attributable taxes and income.**Complete if you checked box 1b above and answered
“Yes” to the question on line 7b, Form 5713. Enter the amount from line o, column (5), Schedule B
(Form 5713) here and on line 22 of Worksheet A in the Form 5471 instructions .
.
.
.
.
.
.
.

a International boycott factor from Schedule A (Form 5713). See lines 2a, 3a, 4a, and 5a below . . . . . . . . . ▶ b Identification of specifically attributable taxes and income from Schedule B (Form 5713). See lines 2b, 3b, 4b, and 5b below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a International boycott factor from Schedule A (Form 5713). See lines 2a, 3a, 4a, and 5a below . . . . . . . . . ▶ b Identification of specifically attributable taxes and income from Schedule B (Form 5713). See lines 2b, 3b, 4b, and 5b below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a International boycott factor from Schedule A (Form 5713). See lines 2a, 3a, 4a, and 5a below . . . . . . . . . ▶ b Identification of specifically attributable taxes and income from Schedule B (Form 5713). See lines 2b, 3b, 4b, and 5b below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see Instructions for Form 5713. Cat. No. 12070O Schedule C (Form 5713) (Rev. 9-2018)

Schedule C (Form 5713) (Rev. 9-2018) Page 2

Future Developments

For the latest information about developments related to Schedule C (Form 5713) and its instructions, such as legislation enacted after they were published, go to www.irs.gov/forms- pubs/about-schedule-c-form-5713.

Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form

Schedule C (Form 5713) is used to compute the loss of tax benefits attributable to participation in or cooperation with an international boycott. Who Must File

Complete Schedule C (Form 5713) if you completed either Schedule A or Schedule B of Form 5713. Partnerships. Each partner must complete a separate Schedule C (Form 5713). Partnerships do not complete Schedule C (Form 5713). Controlled groups. Unless a controlled group (described in section 993(a)(3)) files a consolidated return, each member may independently choose to either (a) apply the international boycott factor under section 999(c)(1) or (b) identify specifically attributable taxes and income under section 999(c)(2). Each member must consistently use a single method to figure the loss of tax benefits.

Other Requirements

• A person who applies the international boycott factor to one operation must apply the factor to all that tax year’s operations under section 908(a), 952(a)(3), 995(b)(1)(F)(ii), or 927(e)(2).

• A person who identifies specifically attributable taxes and income under section 999(c)(2) must use that method for all that tax year’s operations under section 908(a), 952(a)(3), 995(b)(1)(F)(ii), or 927(e)(2).

• An IC-DISC whose tax year differs from the common tax year of the controlled group of which it is a member does not need to amend its return to show on Schedule J (Form 1120-IC-DISC) the amount of IC-DISC benefits lost because of boycott participation. Because the IC-DISC benefits are lost at the shareholder level, the shareholder must include in income the prorated share of income attributable to boycott operations shown on line 4a(3).

• A person excluding extraterritorial income must reduce qualifying foreign trade income using the international boycott factor computed on Schedule A. Lines 2 through 6

Line 2a(1). Enter the foreign tax credit before adjustment from Form 1116 or 1118. Enter the amount from line 30, Part IV, of Form 1116 and/or the amount from line 7, Part III, Schedule B, of Form 1118.

Line 2a(3). Enter the reduction of foreign tax credit from this line on either Form 1116 or 1118. With respect to Form 1116, enter the reduction on line 32, Part IV, and with respect to Form 1118, enter the reduction on line 8, Part III, Schedule B. Line 2b. Enter the reduction of foreign taxes available for credit from this line on Form 1116 or 1118. With respect to Form 1116, include this amount on line 12, Part III. With respect to Form 1118, enter this amount on line C, Schedule G. Line 3a(1). Enter your share of the income of the controlled foreign corporation on line 3a(1).

Nonexempt foreign trade income of a foreign sales corporation (FSC) that was computed without regard to the administrative pricing rules is subject to the subpart F rules. Include your share of these types of income on line 3a(1). Line 4a(1). Enter your pro rata share of section 995(b)(1)(F)(i) amount on line 4a(1) as follows.

• Shareholder that is not a C corporation. Enter your pro rata share of line 8, Part I, Schedule J, Form 1120-IC-DISC.

• Shareholder that is a C corporation. Enter your pro rata share of line 8, Part I, Schedule J, Form 1120-IC-DISC, multiplied by 16/17.

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