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CAUTION

All line references are to 2018 forms unless otherwise noted.

Line 1. Individuals Enter your adjusted gross income as computed on Form 1040.

-2- Instructions for Form 5713 (Rev. 9-2018)

Line 2c. Partnerships and Corporations Enter your principal business activity code number and description from the list at the end of these instructions. Enter the code number for the specific industry group from which the largest percentage of total receipts was derived. Total receipts are defined in the instructions for the Codes for Principal Business Activity located at the end of the instructions for partnership and corporate returns.

Line 2d. IC-DISCs Enter on line 2d the major product code number for the major product or service (as measured by export gross receipts) sold or provided by the IC-DISC (Form 1120-IC-DISC, Schedule N, line 1a).

Line 3a. Partnership's Total Assets Enter the total assets of the partnership (Form 1065 and Form 1065-B, the amount on the Schedule L, “Total assets” line, column (d)).

Line 3b. Partnership's Ordinary Income Enter the partnership's ordinary income (Form 1065, line 22, Ordinary business income (loss)). For electing large partnerships, enter the portion of taxable income (Form 1065-B, amount on “Taxable income (loss) from passive loss limitation activities” line) that is attributable to trade or business activities.

Line 4b. Common Tax Year Election The common tax year of a controlled group is generally the tax year of the common parent. The members of the controlled group can, however, elect the tax year of any member of the group as the common tax year. This election is made by entering the name, tax year, and employer identification number (EIN) of the designated corporation on line 4b.

All members of a controlled group must consent, in writing, to the common tax year election. A common parent can consent to the common tax year election on behalf of all members of the controlled group that joined with the common parent in filing a consolidated return. Foreign corporations that are members of a controlled group should not sign the consent if they are not required to file Form 5713. However, if a foreign corporation subsequently becomes liable to file Form 5713, then it is bound by the common tax year election previously made by the group. A copy of the consent must be attached to each member's Form 5713 filed for the first tax year of such member to which the common tax year election applies. If no common parent

exists or no agreement is reached by the members of the controlled group, the common tax year of the group will be the tax year of the member of the controlled group whose tax year ends in the latest month of the calendar year. The common tax year election is a binding election and can be changed only with the approval of the Secretary.

Line 4c(1). Corporation's Total Assets Enter the amount of total assets from Schedules L of the forms as follows.

Form 1120. Column (d).

Form 1120-F. Column (d).

Form 1120-FSC. Column (d).

Form 1120-IC-DISC (Rev. 11-2018). Column (b).

Form 1120-L. Part I, column (b).

Form 1120-PC. Column (d).

Form 1120S. Line 15, column (d).

For example, the total assets, as of the end of the tax year, for a corporation filing Form 1120 for tax year 2018 can be found on the 2018 Form 1120, Schedule L, line 15, column (d).

Line 4c(2). Corporation's Taxable Income Enter the amount of taxable income before net operating loss (NOL) and special deductions on the following forms on the lines with the labels as follows.

Form 1120. In the Deductions area on page 1, Taxable income before net operating loss deduction and special deductions.

Form 1120-F. In the Deductions area of Section II, Taxable income before NOL deduction and special deductions.

Form 1120-FSC. In Part II of Schedule B, Taxable income or (loss) before net operating loss deduction and dividends-received deduction.

Form 1120-IC-DISC (Rev. 11-2018). On page 1, Taxable income before net operating loss deduction and dividends-received deduction.

Form 1120-L. On page 1, in the Deductions area, Life insurance company taxable income (LICTI), plus the total of the lines “Dividends-received and other special deductions” and “Net operating loss deduction.”

Form 1120-PC. On page 2, in the Deductions area of Schedule A, the subtotal amount found immediately above the line for “Dividends-received and other special deductions.”

Form 1120S. On page 1, in the Deductions area, Ordinary business income (loss).

For example, the amount of taxable income before NOL and special deductions for a corporation filing Form 1120 for tax year 2017 can be found on the 2017 Form 1120, page 1, line 28.

Line 6. Totals

Line 6a. Foreign tax credit. Enter on line 6a the foreign tax credit before adjustment (totals of credits for taxes on section 951A category income, foreign branch category income, passive category income, general category income, section 901(j) category income, certain income re-sourced by treaty, and lump-sum distributions) from Form 1116 or (total of credits for taxes on section 951A category income, foreign branch category income, passive category income, general category income, section 901(j) category income, income re-sourced by treaty) from Form 1118, Schedule B, Part III.

Line 6b. Deferral of earnings of CFCs. Enter on line 6b your pro rata share of total earnings from CFCs (as defined in section 952(a)(3)(A)).

Line 6c. Deferral of IC-DISC income. Shareholders of an IC-DISC should figure the deferral as follows:

Shareholder that is not a C corporation. Enter on line 6c your pro rata share of the section 995(b)(1)(F)(i) amount (pro rata share of Form 1120-IC-DISC, Schedule J, Part I, line 8).

Shareholder that is a C corporation. Enter on line 6c your pro rata share of the section 995(b)(1)(F)(i) amount multiplied by 16/17 (16/17 times your pro rata share of Form 1120-IC-DISC, Schedule J, Part I, line 8).

Line 6d. FSC exempt foreign trade in- come. Enter on line 6d the total exempt foreign trade income (the total of columns (a) and (b) of Form 1120-FSC, Schedule B, line 10).

Line 6e. Foreign trade income qualify- ing for extraterritorial income exclu- sion. Enter on line 6e your foreign trade income that otherwise qualifies for the extraterritorial income exclusion (Form 8873, line 49).