A contract to ship goods to Country M, a nation that is being boycotted, was signed by PTestGeeks Co. A letter of credit approved by First National Bank will be used for payment. Before being paid, PTestGeeks Co. must attest by the terms of the letter of credit that none of its directors is a citizen of any country that Country M has chosen to boycott. After confirming all the paperwork is in place, First National Bank issues the letter of credit to PTestGeeks. Does First National Bank need to notify the IRS about its involvement in a boycott?
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A
Yes, but no reporting requirements were triggered.
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B
Yes. The action was participation in a boycott and the bank must report the action to the IRS.
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C
No. Only ABC Co. is required to report to the IRS.
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D
No. The bank’s action was only ministerial.