QUESTION: 222

First National Bank advises Country A, a boycotting country, on various U.S. investments. Country A instructs First National Bank not to recommend for investment any shares of certain blacklisted companies. First National Bank follows this instruction. Has First National Bank participated or cooperated in an international boycott under the IRS regulations by this action?

Yes. The companies are the subject of a boycott.
No. The bank may agree not to recommend certain companies.
Yes, if the companies are part of a boycott.
No, but the bank must report this action to the IRS.

Answer(s): B

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QUESTION: 222

First National Bank advises Country A, a boycotting country, on various U.S. investments. Country A instructs First National Bank not to recommend for investment any shares of certain blacklisted companies. First National Bank follows this instruction. Has First National Bank participated or cooperated in an international boycott under the IRS regulations by this action?

Yes. The companies are the subject of a boycott.
No. The bank may agree not to recommend certain companies.
Yes, if the companies are part of a boycott.
No, but the bank must report this action to the IRS.

Answer(s): B

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QUESTION: 223

ABC Co. signed a contract to export goods to Country M, a boycotting country. Payment will be made by a letter of credit confirmed by First National Bank. The letter of credit requires ABC Co. to certify that none of its directors are nationals of any country boycotted by Country M before ABC can be paiD. First National Bank confirms the letter of credit to ABC after determining that all of the documents are in order. Did First National Bank participate in a boycott, and must the bank report the action to the IRS?

No. The bank's action was only ministerial.
Yes. The action was participation in a boycott and the bank must report the action to the IRS.
No. Only ABC Co. is required to report to the IRS.
Yes, but no reporting requirements were triggere

Answer(s): B

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QUESTION: 223

ABC Co. signed a contract to export goods to Country M, a boycotting country. Payment will be made by a letter of credit confirmed by First National Bank. The letter of credit requires ABC Co. to certify that none of its directors are nationals of any country boycotted by Country M before ABC can be paiD. First National Bank confirms the letter of credit to ABC after determining that all of the documents are in order. Did First National Bank participate in a boycott, and must the bank report the action to the IRS?

No. The bank's action was only ministerial.
Yes. The action was participation in a boycott and the bank must report the action to the IRS.
No. Only ABC Co. is required to report to the IRS.
Yes, but no reporting requirements were triggere

Answer(s): B

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QUESTION: 222

QUESTION: 222

QUESTION: 223

QUESTION: 223

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