Who Must File

You must file Form 5713 if you are a U.S. person (defined in section 7701(a)(30)) that has operations (defined later) in or related to a boycotting country, or with the government, a company, or a national of a boycotting country.

A member of a controlled group (as defined in section 993(a)(3)) is not required to file Form 5713 if all of the following conditions apply.

The member has no operations in or related to a boycotting country (or with the government, a company, or a national of a boycotting country).

The member did not own stock, directly or indirectly, in any corporation having such operations.

The following U.S. persons also must file Form 5713.

A member of a controlled group (as defined in section 993(a)(3)), a member of which has operations.

A U.S. shareholder (within the meaning of section 951(b)) of a foreign corporation that has operations (but only if you own (within the meaning of section 958(a)) stock of that foreign corporation).

The member did not receive any boycott requests.

The member did not own stock, directly or indirectly, of any corporation receiving a request.

A partner in a partnership that has operations.

A person treated (under section 671) as the owner of a trust that has operations.

Ban on importing or exporting. Although you can comply with a ban on importing or exporting of products described in sections 999(b)(4)(B) and (C) without incurring the loss of tax benefits, you must report the boycott operations from such agreements on Form 5713.

The member is not entitled to (or forfeits) the benefits of the foreign tax credit, the deferral of earnings of a controlled foreign corporation (CFC), IC-DISC benefits, FSC benefits, or the extraterritorial income exclusion.

The member attaches to its tax return a certificate stating that Form 5713 was filed on the member's behalf. This certificate must be signed by a person authorized to sign the income tax return of the common parent of the group.

Foreign corporation with U.S. subsid- iary or sister corporation. A U.S. corporation that is a subsidiary or sister corporation of a foreign corporation can waive the requirement to report boycott operations of its foreign parent or sister corporation if the following conditions are met.

The foreign corporation is not required to file Form 5713 independent of its relationship with the U.S. subsidiary or sister corporation.

The U.S. subsidiary or sister corporation agrees to forfeit the benefits of the foreign tax credit, deferral of taxation of earnings of a CFC, IC-DISC benefits, FSC benefits, and the extraterritorial income exclusion.

Foreign corporation with U.S. branch. A foreign corporation engaged in a U.S. trade or business through a U.S. branch generally is required to file Form 5713 to report the boycott activities of its controlled group, including the U.S. branch. When reporting for the U.S. branch, report all information related to the U.S. branch's boycott activities, including the boycott activities that do not relate to the U.S. trade or business.

The foreign corporation can, however, waive the requirements to report information about its U.S. branch if it does not claim or forfeits the benefits of the foreign tax credit, deferral of taxation of earnings of a CFC, IC-DISC benefits, and FSC benefits. This waiver does not relieve the foreign corporation of reporting boycott activities of all U.S. corporations that are members of the same controlled group of which the foreign corporation is a member.

Partners. A partner is not required to file Form 5713 if:

Aug 10, 2018 Cat. No. 12040A