The Internal Revenue Service said that 112 U.S. companies, partnerships, individuals and other entities reported receiving almost 2,300 requests to participate in boycotts unsanctioned in the U.S. in 2005 and 2006.
Ninety-one percent of the requests came from Arab League countries to participate in boycotts against Israel, according to the IRSs
About 30 percent of the entities that received requests agreed to participate in a boycott, wrote Melizza Costa in an article in the SOI Bulletin. Less than 3 percent of all entities that filed Form 5713, International Boycott Report, however, reported the tax consequences. Taxpayers filed 1,402 Forms 5713 for 2005, while 1,412 forms were filed for 2006.
Corporations filed approximately 90 percent of Forms 5713 for both years, while partnerships accounted for roughly 8 percent of the total. Trusts, estates and individuals filed most of the remainder. Taxpayers listed Saudi Arabia and the United Arab Emirates as countries of operation more frequently than any other countries.
