IRS Form 5713 – International Boycott Report

IRS Form 5713 – In today’s global economy, U.S. taxpayers engaging in international business must navigate complex tax reporting requirements. One such obligation is IRS Form 5713, also known as the International Boycott Report. This form is essential for reporting participation in or cooperation with unsanctioned international boycotts, which can impact certain tax benefits. Whether you’re a business owner, tax professional, or individual with overseas operations, understanding Form 5713 is crucial to ensure compliance and avoid penalties.

This guide covers everything you need to know about IRS Form 5713, including its purpose, filing requirements, and step-by-step instructions. We’ll draw from official IRS sources to provide accurate, up-to-date information as of 2026.

What Is IRS Form 5713?

IRS Form 5713 is a reporting document used by U.S. persons to disclose operations in or related to countries that participate in international boycotts not approved by the United States. The form helps the IRS identify instances where taxpayers may lose specific tax benefits due to boycott-related activities.

Key aspects include:

  • Reporting boycott requests received.
  • Detailing agreements made in connection with boycotts.
  • Calculating the loss of tax benefits, such as reductions in foreign tax credits or deferrals for controlled foreign corporations (CFCs).

The form applies to activities involving boycotts, primarily against Israel, but also extends to other unsanctioned boycotts. It’s not an admission of wrongdoing but a mandatory disclosure for qualifying operations.

Purpose of the International Boycott Report

The primary goal of Form 5713 is to enforce U.S. anti-boycott laws under Internal Revenue Code (IRC) Section 999. These laws discourage participation in foreign boycotts that conflict with U.S. policy, such as the Arab League boycott of Israel.

By filing, taxpayers report:

  • Operations in boycotting countries.
  • Receipt of boycott requests (e.g., clauses in contracts requiring non-dealing with certain entities).
  • Agreements to cooperate with boycotts.

This reporting can result in the denial of tax benefits like:

  • Foreign tax credits (under Section 908(a)).
  • Deferral of income for CFCs (Section 952(a)(3)).
  • Exemptions for Foreign Sales Corporations (FSCs) or Interest Charge Domestic International Sales Corporations (IC-DISCs).
  • Extraterritorial income exclusions (though largely repealed, still relevant in some cases).

Form 5713 ensures transparency and aligns tax incentives with U.S. foreign policy.

Who Must File IRS Form 5713?

Not every international transaction triggers a filing requirement. You must file if you are a U.S. person (as defined under IRC Section 7701(a)(30)) and have:

  • Operations in or related to a boycotting country.
  • Operations with the government, companies, or nationals of a boycotting country.
  • Received boycott requests or entered into boycott agreements.

This includes:

  • Individuals, corporations, partnerships, trusts, and estates.
  • Members of controlled groups where any member has boycott-related operations.
  • U.S. shareholders of foreign corporations with such operations.
  • Partners in partnerships involved in boycotts.

Exceptions exist, such as:

  • Foreign persons not claiming U.S. tax benefits.
  • Members of consolidated groups if the parent files on behalf of all.
  • Cases involving U.S.-approved boycotts or unsolicited bids not accepted.

If you’re unsure, consult the IRS instructions to determine applicability.

Current List of Boycotting Countries

The U.S. Department of the Treasury maintains a list of countries requiring cooperation with international boycotts. As of the latest report in January 2025, the list includes:

  • Iraq
  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • Yemen

This list has remained unchanged since May 2024 and is updated quarterly. Operations in non-listed countries may still require reporting if they involve known boycott activities. Check the Federal Register for the most current list.

How to Complete IRS Form 5713: Step-by-Step

Form 5713 is divided into parts and may require attached schedules. Use the international boycott factor or specifically attributable taxes method to calculate tax benefit losses.

  • Report operations by country, including identifying numbers (e.g., EIN), business activity codes (from NAICS), and descriptions.
  • Separate sections for boycotts of Israel (listed and non-listed countries) and other boycotts.

Part II: Requests for and Acts of Participation

  • Indicate if requests were received or agreements made.
  • Detail by country, person involved, activity codes, and type of request/agreement (e.g., refraining from business with boycotted entities).

Schedules

  • Schedule A: Computes the international boycott factor for reducing benefits like extraterritorial income exclusions.
  • Schedule B: Figures specifically attributable taxes and income as an alternative method.
  • Schedule C: Calculates the overall tax effect and loss of benefits.

For partnerships and controlled groups, special rules apply, including electing a common tax year.

Gather financial data from your tax return (e.g., adjusted gross income for individuals, total assets for entities) and ensure accurate reporting of all related entities.

Filing Requirements and Deadlines for Form 5713

  • When to File: Due with your income tax return, including extensions.
  • Where to File: Attach to your Form 1040, 1120, 1065, or other applicable return. No separate mailing unless required.
  • Electronic Filing: If e-filing your return, include Form 5713 electronically.
  • Multiple Filers: In controlled groups, coordinate to avoid duplicates.

For tax years beginning in 2025, use the 2025 forms as outlined in recent IRS revenue procedures.

Penalties for Not Filing Form 5713

Willful failure to file can result in severe consequences:

  • A fine of up to $25,000.
  • Imprisonment for up to one year.
  • Or both.

Even if no tax benefits are lost, reporting is mandatory for qualifying operations. Timely filing avoids these risks.

Where to Download IRS Form 5713?

You can download the latest version of Form 5713 directly from the IRS website. Here’s the official PDF link: https://www.irs.gov/pub/irs-pdf/f5713.pdf.

For instructions, visit https://www.irs.gov/instructions/i5713. Schedules A, B, and C are available separately.

Recent Updates to IRS Form 5713

As of February 2026, there are no significant recent developments or changes to Form 5713. The instructions remain based on the September 2018 revision, with ongoing applicability for 2025 tax years. However, always verify with the IRS for any last-minute updates.

Conclusion

Navigating IRS Form 5713 can seem daunting, but proper understanding ensures compliance with U.S. tax laws on international boycotts. If your business involves operations in boycotting countries, prioritize accurate reporting to protect tax benefits and avoid penalties. For personalized advice, consult a tax professional familiar with international tax rules.

By staying informed on IRS Form 5713 requirements, you can maintain smooth global operations while adhering to regulations. If you have questions, the IRS website offers additional resources for the International Boycott Report.