1999 Department of the Treasury Internal Revenue Service Instructions for Form 990-C Farmers' Cooperative Association Income Tax Return Section references are to the Internal Revenue Code unless otherwise noted. Changes To Note l  New rules for determining whether the corporation must use the Electronic Federal Tax Payment System (EFTPS) to make Federal tax deposits are effective beginning January 1, 2000. For details, see Electronic Deposit Requirement on page 2. l  The Tax Relief Extension Act of 1999 changed the definition of a capital asset, modified the treatment of gains from constructive ownership transactions, repealed the use of the installment method for certain taxpayers, and limited the use of the nonaccrual experience method of accounting.   See Pub. 553, Highlights of 1999 Tax Changes, for details on these and other changes. Photographs of Missing Children The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Unresolved Tax Problems Most problems can be resolved with one contact by calling, writing, or visiting an IRS office. But if the cooperative has tried unsuccessfully to resolve a problem with the IRS, it should contact the Taxpayer Advocate's office.   The cooperative will be assigned a personal advocate who is in the best position to try to resolve the problem. Contact the Taxpayer Advocate if the cooperative: l  Is suffering or about to suffer a significant hardship. l  Is facing an immediate threat of adverse action. l  Will incur significant costs if relief is not granted (including fees for professional representation). l  Will suffer irreparable injury or long-term adverse impact if relief is not granted. l  Has experienced a delay of more than 30 calendar days to resolve a tax problem or inquiry. l  Has not received a response or resolution to the problem by the date promised. The cooperative may contact a Taxpayer Advocate by calling a toll-free assistance number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for the Taxpayer Advocate. If the cooperative prefers, it may write to the Taxpayer Advocate at the IRS office that last contacted the cooperative. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that the cooperative's case is given a complete and impartial review. For more information about Taxpayer Advocate, see Pub. 1546, The Taxpayer Advocate Service of the IRS. How To Get Forms and Publications Personal computer.   You can access the IRS's Internet Web Site 24 hours a day, 7 days a week at   www.irs.gov to: l  Download forms, instructions, and publications. l  See answers to frequently asked tax questions. l  Search publications on-line by topic or keyword. l  Send us comments or request help by e-mail. l  Sign up to receive local and national tax news by e-mail. You can also reach us using file transfer protocol at ftp.irs.gov. CD-ROM.   Order Pub. 1796, Federal Tax Products on CD-ROM, and get: l  Current year forms, instructions, and publications. l  Prior year forms, instructions, and publications. l  Popular tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping. l  The Internal Revenue Bulletin. Buy the CD-ROM on the Internet at www.irs.gov/cdorders from the National Technical Information Service (NTIS) for $16 (plus a $5 handling fee), and save 30%, or call 1-877-CDFORMS (1-800-233-6767) toll free to buy the CD-ROM for $23 (plus a $5 handling fee). By Phone and In Person.   You can order forms and publications 24 hours a day, 7 days a week, by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office. General Instructions Purpose of Form Use Form 990-C , Farmers' Cooperative Association Income Tax Return, to report income, gains, losses, deductions, credits, and to figure the income tax liability of the cooperative. Who Must File Every farmers' cooperative association must file Form 990-C whether or not the association has taxable income (Regulations section 1.6012-2(f)). Generally, a farmers' cooperative is a farmers', fruit growers', or like association organized and operated on a cooperative basis to: 1. Market the products of members or other producers and return to them the proceeds of sales, less necessary marketing expenses, on the basis of either the quantity or value of their products; OR 2. Purchase supplies and equipment for the use of members or other persons and turn over the supplies and equipment to them at actual cost, plus necessary expenses. A member is anyone who shares in the profits of a cooperative association and is entitled to participate in the management of the association. A producer is a person who, as owner or tenant, bears the risk of production and receives income based on farm production rather than fixed compensation. For example, if a cooperative leases its land to a tenant farmer who agrees to pay a rental fee based on a percentage of the farm crops produced, both the landowner and the tenant farmer qualify as producers. When To File Generally, a cooperative must file its income tax return by the 15th day of the 9th month after the end of its tax year. If the due date falls on a Saturday, Sunday, or legal holiday, the cooperative may file on the next business day. Private Delivery Services.   You can use certain private delivery services designated by the IRS to meet the “timely mailing as timely filing/paying” rule for tax Cat. No. 11288M