On 3 January 2022, the U.S. Treasury notice on the current list of countries that may require participation in, or cooperation with, an international boycott was published in the Federal Register. The countries listed include Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, and Yemen.
Any person or a member of a controlled group with operations in or related to a country on the list, or with the government, a company, or a national of a listed country is required to file Form 5713 (International Boycott Report), subject to certain exceptions. Form 5713 must also be filed by any person with operations in a non-listed country that requires participation in, or cooperation with, an international boycott as a condition of doing business with the country.
Taxpayers required to file the form may lose certain tax benefits, including:
The exact limits on benefits are determined through the completion of Form 5713.