Specific Instructions

Address

Include the suite, room, or other unit number after the street address. If the Post Office does not deliver mail to the street address and the filer has a P.O. box, show the box number instead.

If you receive your mail in care of a third party (such as an accountant or an attorney), enter on the street address line “C/O” followed by the third party's name and street address or P.O. box.

Address of Service Center

Enter the address of the service center where your tax return was filed. If the return was e-filed, enter “e-file”.

Lines 1 Through 6

Note.

All line references are to 2010 forms unless otherwise noted.

Line 1. Individuals

Enter your adjusted gross income (from Form 1040, line 37).

Line 2c. Partnerships and Corporations

Enter your principal business activity code number and description from the list beginning on page 6. 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, line 14, column (d) of Schedule L).

Line 3b. Partnership's Ordinary Income

Enter the partnership's ordinary income (Form 1065, page 1, line 22). For electing large partnerships, enter the portion of taxable income (Form 1065-B, page 1, line 25) 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 as follows.

Form 1120.   Schedule L, line 15, column (d).

Form 1120-F.   Schedule L, line 17, column (d).

Form 1120-FSC.   Schedule L, line 15, column (d).

Form 1120-IC-DISC.   Schedule L, line 3, column (b).

Form 1120-L.   Schedule L, Part I, line 6, column (b).

Form 1120-PC.   Schedule L, line 15, column (d).

Form 1120S.   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 as follows.

Form 1120.   Page 1, line 28.

Form 1120-F.   Page 3, line 29.

Form 1120-FSC.    Page 3, Schedule B, line 18.

Form 1120-IC-DISC.   Page 1, line 5.

Form 1120-L.   Page 1, line 24, plus line 21c.

Form 1120-PC.   Page 2, Schedule A, line 35.

Form 1120S.   Page 1, line 21 (ordinary business income).

Line 6. Totals

Line 6a. Foreign tax credit.   Enter on line 6a the foreign tax credit before adjustment from Form 1116, line 27, or Form 1118, Schedule B, Part III, line 4.

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

Line 6c. Deferral of IC-DISC income.   Shareholders of an IC-DISC should compute 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 income.   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 qualifying for extraterritorial income exclusion.   Enter on line 6e your foreign trade income that otherwise qualifies for the extraterritorial income exclusion (Form 8873, line 49).

Lines 8 Through 13

Filers that are not members of a controlled group.   If you are not a member of a controlled group, report on lines 8 through 13 your own boycott information and the boycott information with respect to:
  • Any foreign corporation in which you are a U.S. shareholder,

  • Any partnership in which you are a partner, or

  • Any trust of which you are treated as the owner under section 671.

  When reporting on behalf of a foreign corporation, partnership, or trust, report the boycott activities for the tax year of the foreign corporation, partnership, or trust that ends with or within your tax year.

Members of a controlled group of corporations.   If you are a member of a controlled group of corporations, the answers to the questions on lines 8 through 13 for your tax year must reflect:
  • Your boycott information (and the boycott information of any trust of which you are treated as the owner under section 671) for your tax year that ends with or within the common tax year that ends with or within your tax year (see instructions for line 4b).

  • The boycott information of each other member of the controlled group (and that of any trust of which a member of the controlled group is treated as the owner under section 671) for each member's tax year that ends with or within the common tax year that ends with or within your tax year.

  • The boycott information of each foreign corporation or partnership on whose behalf you are reporting as a U.S. shareholder or as a partner, for the tax year of the foreign corporation or the partnership that ends with or within your tax year that ends with or within the common tax year that ends with or within your tax year.

  • The boycott information of each foreign corporation or partnership on whose behalf a member (other than you) of the controlled group is reporting as a U.S. shareholder or as a partner, for the tax year of the foreign corporation or the partnership that ends with or within such member's tax year that ends with or within the common tax year that ends with or within your tax year.

  The effect of these reporting requirements is that the answers to the questions on lines 8 through 13 generally are identical for each member of the controlled group and should only be updated on a group basis once a year. The information is updated at the close of the common tax year, and is reported by each member of the group for its tax year that ends with or after the common tax year. If the tax years of all members, foreign corporations, and partnerships are the same as the common tax year, then all information is reported on a current basis.

  If all tax years are different, then all or some of the information reported will reflect a time period that is different from the reporter's tax year.

Example.

Assume that Corporations A, B, C, and D are all members of a controlled group. Corporation A is the common parent and no common tax year election is made. Corporations A, B, and C report on the basis of a calendar year. Corporation D reports on the basis of a July 1–June 30 tax year. Corporation C owns 15% of Foreign Corporation X. Corporation X reports on the basis of an April 1–March 31 tax year. Corporations A, B, C, D, and X have operations in boycotting countries. The answers to the questions on lines 8 through 13 on the Forms 5713 filed by Corporations A, B, and C for their 2009 tax years will reflect the operations of Corporations A, B, and C for the 2009 tax year, the operations of Corporation D for the period July 1, 2008–June 30, 2009, and the operations of Corporation X for the period April 1, 2008–March 31, 2009. The answers to the questions on lines 8 through 13 on the Form 5713 filed by Corporation D for its tax year ending June 30, 2010, will be identical to those on Forms 5713 filed by Corporations A, B, and C for their tax years ending December 31, 2009. The answers on lines 8 through 13 on the Form 5713 filed by Corporation D for its tax year ending June 30, 2010, will not reflect any of Corporation D's operations for its July 1, 2009–June 30, 2010, tax year.

Part I. Operations in or Related to a Boycotting Country

Line 8. Boycott of Israel

The question on line 8 concerns operations in or related to countries on the Secretary's list of countries associated in the boycott of Israel. Use a separate line for each country or each person having operations in that country. Do not use separate lines for separate operations by the same person in the same country.

Column (2).   Enter the identifying number of each person having operations in or related to any of the listed countries. If you are a member of a controlled group of corporations, include the EIN of all members of your controlled group that have operations in or related to the listed countries. If you or a member of your controlled group is the U.S. shareholder of a foreign corporation which has operations in or related to the listed countries (or with the governments, companies, or nationals of those countries), enter your EIN or the EIN of the member of your group who is the U.S. shareholder. Then, in parentheses, enter the name and EIN, if available, of the foreign corporation having the operation in or related to the listed countries.

Columns (3) and (4).   Enter in column (3) the principal business activity code number (see the list beginning on page 6) of the person that has the boycott operation. Enter a brief description of the principal business activity in column (4).

Column (5).   IC-DISCs, enter the product code from Form 1120-IC-DISC, Schedule N, line 1a.

Line 9. Nonlisted Countries Boycotting Israel

If the answer to the question on line 9 is “Yes,” use the same procedure outlined in the instructions for line 8 for any nonlisted countries which you know or have reason to know require participation in or cooperation with the international boycott of Israel.

Line 10. Boycotts of Countries Other Than Israel

If the answer to the question on line 10 is “Yes,” use the same procedure outlined in the instructions for line 8 for an international boycott other than the boycott of Israel.

Line 11. Boycott Requests

If you receive a substantial number of similar requests, you can attach a copy of one of these requests and a statement showing the number and nature of all other similar requests received.

Line 12. Boycott Agreements

If a substantial number of boycott agreements were entered into or were effective for the period covered by the report, and the boycott clauses are similar, you can attach a sample boycott clause and a statement showing the number and general nature of all other boycott clauses and agreements entered into. An agreement to participate in or cooperate with an international boycott continues for the entire period that it is in effect and must be reported each year that it is in effect.

Part II. Requests for and Acts of Participation in or Cooperation With an International Boycott

Line 13a(1) and 13a(2)

Check “Yes” for any requests received or agreements entered into or continuing in effect during the period covered by the report for any international boycott not excluded under U.S. approved boycotts on page 1. Also see Unsolicited invitation to bid on page 1. If no requests were received and no agreements were entered into or in effect, enter “No.

Line 13b

Use a separate line for each country, person, and type of participation or cooperation. Do not use separate lines for similar types of participation or cooperation by the same person in the same country.

Column (2).   Enter the identifying number of the person receiving the request or having the agreement.

Columns (3) and (4).   Enter in column (3) the principal business activity code number (see the list beginning on page 6) of the person receiving the request or the person who has the agreement. Enter in column (4) a brief description of the principal business activity of that person.

Column (5).   IC-DISCs are required to enter the product code from Form 1120-IC-DISC, Schedule N, line 1a.

Columns (6) and (8).   Enter in column (6) the total number of requests of the same type that were received by the same person in the same country. Enter in column (8) the total number of agreements of the same type that were entered into by the same person in the same country.

Columns (7) and (9).   Enter in column (7) the code number listed in the following chart that indicates the type of participation or cooperation requested. Enter in column (9) the code number listed in the following chart that indicates the type of participation or cooperation agreed to.
Code Number Type of Cooperation  
or Participation Requested  
or Agreed to
01 Refrain from doing business with or in a country that is the object of the boycott or with the government, companies, or nationals of that country.
02 Refrain from doing business with any U.S. person engaged in trade in a country that is the object of the boycott or with the government, companies, or nationals of that country.
03 Refrain from doing business with any company whose ownership or management is made up, in whole or in part, of individuals of a particular nationality, race, or religion, or to remove (or refrain from selecting) corporate directors who are individuals of a particular nationality, race, or religion.
04 Refrain from employing individuals of a particular nationality, race, or religion.
05 As a condition of the sale of a product to the government, a company, or a national of a country, to refrain from shipping or insuring products on a carrier owned, leased, or operated by a person who does not participate in or cooperate with an international boycott.


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