On December 1, 2010, the IRS published the list of countries that require or may require participation in, or cooperation with, an international boycott within the meaning of I.R.C. Section 999(b)(3). The following countries are on this list: Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates, and Republic of Yemen. Iraq is not included, but its status with respect to future lists remains under review by the Department of Treasury.
U.S. persons with operations in or related to a “boycotting country,” or with the government, a company, or a national of a boycotting country, must file Form 5713 to report certain transactions with respect to such operations. The form is also required to report receipt of boycott requests and agreements made that would constitute cooperation with, or participation in, an international boycott.
For more detailed information on Form 5713 requirements, see “Form 5713 - International Boycott Reporting” article dated August 19, 2010.
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