A country that may have a requirement to cooperate with an international boycott due to affiliation with certain international organization.
Once an IE establishes that the taxpayer participates in or cooperates with any international boycott, there arises a presumption that the taxpayer participates in or cooperates with international boycotts with respect to all other boycotting countries. For purposes of this section: (1) Boycotting country. In respect of a particular international boycott, the term “boycotting country” means any country described in section 999(a)(1) (A) or (B) that requires participation in or cooperation with that particular international boycott. (2) Participation in or cooperation with an Boycott Defined. A boycott involves entering into certain agreements as a condition of doing business in a country. The agreement requires a person to refrain from doing business in (or hiring employees from) another country or with other persons that do business in (or hire employees from) the other country. Taxpayers must report their operations in boycotting countries. Taxpayers that participate in international boycotts may be subject to penalties that reduce their foreign tax credit, the benefits of foreign sales corporations, and the deferral available to U.S. shareholders of controlled foreign corporations. Definition. A country that may have a requirement to cooperate with an international boycott due to affiliation with certain international organization. Form 5713 is due with the income tax return, including extensions. Boycotting Countries. On February 14, 2013, the Treasury Department published a list of countries that may require participation in, or cooperation with, an international boycott. The boycotting countries identified are as follows: 1  Iraq. Boycott Countries. The Treasury Department periodically publishes a list of countries that may require boycott participation. The countries identified in the most recent notice are: Bahrain; Iraq; Saudi Arabia; United Arab Emirates; Republic of Yemen; Oman; Qatar; Kuwait; Lebanon; Libya; Syria.
https://www.irs.gov/irm/part4/irm_04-061-006.html https://www.law.cornell.edu/cfr/text/26/7.999-1 https://www.irs.gov/irm/part4/irm_04-061-006.html https://www.irs.gov/irm/part4/irm_04-061-006.html http://www.businessdictionary.com/definition/international-boycott-country.html http://www.cbh.com/international-boycott-list-updated-by-treasury-department/ https://www.irs.gov/irm/part4/irm_04-061-006.html
what is international boycott