Instructions by identifying specifically attributable amount from line 31, Part IV, of
taxes and income. Form 1116. Corporate filers, enter the
Section references are to the Internal amount from line 9, Part III,
Revenue Code unless otherwise Other Requirements Schedule B, of Form 1118.
noted.
● A person who applies the Line 2a(3). Enter the reduction of
international boycott factor to one foreign tax credit from this line on
Purpose of Form operation must apply the factor to all either Form 1116 or 1118. Individual
Schedule C (Form 5713) is used to that tax year’s operations under filers, enter this amount on line 32,
compute the loss of tax benefits section 908(a), 952(a)(3), 995(b)(1)(F)(ii), Part IV, of Form 1116. Corporate filers,
attributable to participation in or or 927(e)(2). enter this amount on line 10, Part III,
cooperation with an international ● A person who identifies specifically Schedule B, of Form 1118.
boycott. attributable taxes and income under Line 2b. Enter the reduction of foreign
section 999(c)(2) must use that taxes available for credit from this line
Who Must File method for all that tax year’s on Form 1116 or 1118. Individual
operations under section 908(a), filers, include this amount on line 12,
Complete Schedule C (Form 5713) if
952(a)(3), 995(b)(1)(F)(ii), or 927(e)(2). Part III, of Form 1116. Corporations,
you completed either Schedule A or
● An IC-DISC whose tax year differs enter this amount on line C,
Schedule B of Form 5713.
from the common tax year of the Schedule G, of Form 1118.
Partnerships. Each partner must
controlled group of which it is a Line 3a(1). Enter your share of the
complete a separate Schedule C
member does not need to amend its income of the controlled foreign
(Form 5713). Partnerships do not
return to show on Schedule J corporation on line 3a(1).
complete Schedule C (Form 5713).
(Form 1120-IC-DISC) the amount of Nonexempt foreign trade income of
Controlled groups. Unless a IC-DISC benefits lost because of a foreign sales corporation (FSC) that
controlled group (described in section boycott participation. Because the was computed without regard to the
993(a)(3)) files a consolidated return, IC-DISC benefits are lost at the administrative pricing rules is subject
each member may independently shareholder level, the shareholder to the subpart F rules. Include your
choose to either (a) apply the must include in income the prorated share of these types of income on
international boycott factor under share of income attributable to boycott line 3a(1).
section 999(c)(1) or (b) identify operations shown on line 4a(3).
specifically attributable taxes and Line 4a(1). Enter your pro rata share
● A person excluding extraterritorial of section 995(b)(1)(F)(i) amount on
income under section 999(c)(2). Each
income must reduce qualifying foreign line 4a(1) as follows:
member must consistently use a
trade income using the international
single method to figure the loss of tax ● Shareholder that is not a
boycott factor computed on
benefits. C corporation. Enter your pro rata
Schedule A.
Example. A member that chooses share of line 8, Part I, Schedule J,
to use the international boycott factor Form 1120-IC-DISC.
must apply it to determine its loss of
Lines 2 through 6 ● Shareholder that is a
the section 902 indirect foreign tax Note. All line references are to 2005 C corporation. Enter your pro rata
credit on a dividend that another forms unless otherwise noted. share of line 8, Part I, Schedule J,
member of the controlled group paid Line 2a(1). Enter the foreign tax credit Form 1120-IC-DISC, multiplied by
to it, even if the other member before adjustment from Form 1116 or 16/17.
determines its own loss of tax benefits 1118. Individual filers, enter the