Instructions For Form 1099-Patr - 2015 (Page 2 of 2) in pdf

Box 4. Federal Income Tax Withheld

a cooperative engaged in the marketing of agricultural or

horticultural products (or both), the cooperative is treated as

Enter backup withholding. For example, persons who have not

having manufactured, produced, grown, or extracted in whole or

furnished their TIN to you in the manner required are subject to

in significant part any qualifying production property marketed by

withholding at a 28% rate on payments required to be reported in

the cooperative that its patrons have manufactured, produced,

boxes 1, 2, 3, and 5 to the extent such payments are in cash or

grown, or extracted. Agricultural or horticultural products also

qualified check. See Regulations section 31.3406(b)(2)-5 for

include fertilizer, diesel fuel, and other supplies used in

more information on backup withholding by cooperatives.

agricultural or horticultural production that are manufactured,

produced, grown, or extracted by the cooperative.

Box 5. Redemption of Nonqualified

Notices and Retain Allocations

Do not reduce the amounts reported in boxes 1 or 3 by

the amount you report in box 6.

For farmers' cooperatives qualifying under section 521 only,

enter all redemptions of nonqualified written notices of allocation

CAUTION

issued as patronage dividends or nonqualified written notices of

Written notice. In order for the patron to qualify for the

allocation issued as nonpatronage allocations. Also enter

deduction, the cooperative must designate the patron's portion

nonqualified per-unit retain certificates issued with respect to

of the section 199 deduction in a written notice mailed to the

marketing.

patron no later than the 15th day of the ninth month following the

close of the tax year. The cooperative may use the same written

Pass-Through Credits and Deductions

notice, if any, that it uses to notify patrons of their respective

allocations of patronage dividends, or may use a separate timely

Report in the appropriate boxes the patron's share of unused

written notice to comply with the written notice requirement for

credits and deductions that the cooperative is passing through to

this deduction.

the patron.

Box 7. Investment Credit

Box 6. Domestic Production

Activities Deduction

Enter the total investment credit for the patron.

Box 8. Work Opportunity Credit

A cooperative must reduce its section 1382 deduction

by an amount equal to the portion of any patronage

Enter the total work opportunity credit for the patron.

dividend or per-unit retain allocation, including any

CAUTION

advances on these paid in cash during the year, that is

Box 9. Patron's AMT Adjustment

attributable to the cooperative's section 199 deduction passed

Enter the total alternative minimum tax (AMT) patronage

through to its patrons during the year. See Regulations section

dividend adjustment for the patron.

1.199-6 for more details.

Box 10. Other Credits and Deductions

Deduction for domestic production activities income.

Section 199(d)(3) and Regulations section 1.199-6 provide

For the patron, state separately in box 10 the type and amount of

special rules for cooperatives to pass through, if elected, to their

each of the following credits and deductions.

patrons receiving certain patronage dividends or certain per-unit

Note. Some of the credits below expired on December 31,

retain allocations from the cooperative a deduction equal to their

2014. They are being retained for fiscal year cooperatives. To

portion of the cooperative's qualified production activities income

see whether any of the credits are extended for calendar year

(QPAI) that would be deductible by the cooperative and have

2015, go to

been designated by the cooperative in a written notice mailed to

The alcohol and cellulosic biofuel fuels credit (including

its patrons during the payment period specified under section

1382(d). The deduction for QPAI applies to any cooperative that

second generation biofuel) (Form 6478).

is engaged in the manufacturing, producing, growing, or

The renewable electricity, refined coal, and Indian coal

extracting in whole or significant part of any agricultural or

production credit (Form 8835).

horticultural product, or the marketing of agricultural or

The empowerment zone and renewal community employment

horticultural products.

credit (Form 8844).

The Indian employment credit (Form 8845).

If any amount of a patronage dividend or qualified per-unit

The biodiesel and renewable diesel fuels credit (Form 8864).

retain allocation is passed through to a patron, and such amount

The low sulfur diesel fuel production credit (Form 8896).

is allocable to QPAI that is deductible under section 199(a), then

the amount is reported in box 6. However, if no written notice

The credit for employer differential wage payments (Form

(see later) was sent within the payment period or if the

8932).

cooperative does not pass through the deduction to the patron,

The credit for small employer health insurance premiums

leave box 6 blank.

(Form 8941).

The deduction for capital costs incurred by small refiner

To determine the portion of the cooperative's QPAI that would

cooperatives when complying with EPA sulfur regulations.

be deductible, the cooperative's taxable income is computed

The deduction for expensing qualified refinery property under

without taking into account any deduction allowable under

section 179C(g).

section 1382(b) or (c) relating to patronage dividends, per-unit

retain allocations, and nonpatronage distributions. In the case of

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Instructions for Form 1099-PATR (2015)

Instructions For Form 1099-Patr - 2015 Page 2

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