Specific Instructions for Form 1099-PATR
File Form 1099-PATR, Taxable Distributions Received From Cooperatives, for each person to whom the cooperative has paid at least $10 in
patronage dividends and other distributions described in section 6044(b) or from whom you withheld any Federal income tax
under the backup withholding
rules regardless of the amount of the payment. A cooperative determined to be primarily engaged in the retail sale of goods
or services that are
generally for personal, living, or family use of the members may ask for and receive exemption from filing Form 1099-PATR.
See Form 3491,
Consumer Cooperative Exemption Application, for information about how to apply for this exemption. Report dividends paid on
a cooperative's
capital stock on Form 1099-DIV, Dividends and Distributions.
Exceptions.
Generally, you are not required to file Form 1099-PATR for payments made to a corporation, a tax-exempt organization,
the United States, a state, a
possession, or the District of Columbia. See Regulations section 1.6044-3(c).
If you are required to file Form 1099-PATR, you must provide a statement to the recipient. For more information about the
requirement to furnish an
official form or acceptable substitute statement to recipients in person, by statement mailing, or electronically, see part
H in the
2004 General Instructions for Forms 1099, 1098, 5498, and W-2G.
You may enter an “X” in this box if you were notified by the IRS twice within 3 calendar years that the payee provided an incorrect taxpayer
identification number (TIN). If you mark this box, the IRS will not send you any further notices about this account.
For more information on the TIN Matching System offered by the IRS, see the 2004 General Instructions for Forms 1099, 1098, 5498, and
W-2G.
Box 1. Patronage Dividends
Enter the total patronage dividends paid in cash (qualified or “consent” checks), qualified written notices of allocation (face amount), and
other property (except nonqualified written notices of allocation).
Box 2. Nonpatronage Distributions
This box applies only to farmers' cooperatives exempt from tax under section 521. Enter the total nonpatronage distributions
paid in cash
(qualified or “consent” checks), qualified written notices of allocation (face amount), and other property. Do not include nonqualified written
notices of allocation.
Box 3. Per-Unit Retain Allocations
Enter the total per-unit retain allocations paid in cash, qualified per-unit retain certificates (face amount), and other
property.
Box 4. Federal Income Tax Withheld
Enter backup withholding. For example, persons who have not furnished their TIN to you in the manner required are subject
to withholding at a 28%
rate on payments required to be reported in boxes 1, 2, 3, and 5 to the extent such payments are in cash or qualified check.
See Regulations section
31.3406(b)(2)-5 for more information on backup withholding by cooperatives.
Box 5. Redemption of Nonqualified Notices and Retain Allocations
For farmers' cooperatives qualifying under section 521 only, enter all redemptions of nonqualified written notices of allocation
issued as
patronage dividends or nonqualified written notices of allocation issued as nonpatronage allocations. Also enter nonqualified
per-unit retain
certificates issued with respect to marketing.
Report in the appropriate boxes the patron's share of unused credits that the cooperative is passing through to the patron.
For the patron, state separately in box 6 (or in the blank box below boxes 8 and 9 if more than one credit applies) the type
and amount of each of
the following credits:
- The empowerment zone and renewal community employment credit (Form 8844).
- The Indian employment credit (Form 8845).
- The welfare-to-work credit (Form 8861).
- The New York Liberty Zone business employee credit (Form 8884) for wages paid during 2002 or 2003.
Enter the total investment credit for the patron.
Box 8. Work Opportunity Credit
Enter the total work opportunity credit for the patron. Do not include the New York Liberty Zone business employee credit on line 8;
instead, include it on line 6.
Box 9. Patron's AMT Adjustment
Enter the total alternative minimum tax (AMT) patronage dividend adjustment for the patron.
