Instructions For Form 1028 (Page 2 of 2) in pdf

Part II—Type of Entity and

Declaration of Representative, or Form 8821,

All financial information for the current year

Tax Information Authorization, for this

must cover the period beginning on the first

Organizational Documents

purpose.

day of your organization’s established annual

One of the basic requirements for exemption

accounting period and ending on any day

D. Attachments

is that the organization be “organized” for one

which is within 60 days of the date of the

or more exempt purposes. If the organization

application. If the date of the application is

Every attachment should state that it relates

does not have an organizing instrument, it will

less than 60 days after the first day of the

to Form 1028 and identify the applicable part

not qualify for exempt status.

current accounting period, no financial

and line item number. The attachments

information is required for the current year.

should also show the organization’s name,

None of the documents submitted in

Financial information is required for the 3

address, and employer identification number

support of this application, including

preceding years regardless of the current year

(EIN), and be on 8

⁄

”

11” paper.

organizational documents, will be returned.

requirements. Please note that if no financial

In addition to the required documents and

Instead of the originals, submit

information is required for the current year,

statements, include any additional information

“conformed” copies of these documents. A

the preceding year’s financial information can

citing court decisions, rulings, opinions, etc.,

“conformed” copy is one that agrees with the

end on any day which is within 60 days of the

that may help to speed the processing of the

original document and all of its amendments.

date of the application.

application. Generally, attachments in the

If the copies are not signed, they must be

You may reproduce page 4 of the form and

form of tape recordings are not accepted

accompanied by a declaration signed by an

complete the financial data for each required

unless accompanied by a transcript.

officer authorized to sign for the organization,

year. Attach the financial data for all required

certifying that they are complete and accurate

E. Annual Return

years to the application.

copies of the original documents.

The statements should be consistent with

An organization that is recognized as exempt

Chemically or photographically reproduced

the method of accounting the organization

from income tax under section 521 must file

copies of articles of incorporation showing

uses in maintaining its books and records.

an annual return on Form 990-C, Farmers’

the certification of an appropriate government

Cooperative Association Income Tax Return.

official need not be accompanied by a

Line 3b—Cost of Goods Sold.—Include

declaration.

per-unit retain allocations paid to patrons in

An organization will not be considered

money, qualified written notices of allocation,

exempt, even though it operates within the

Part III—Activities and

or other property (except nonqualified per-unit

provisions of section 521 and Subchapter T,

Operational Information

retain certificates) and the amount paid to

unless it files this application or has

patrons in money or other property (except

previously received a ruling recognizing its

Lines 17 through 19.—The information

per-unit retain certificates) to redeem

exemption under section 521 of the Internal

requested on lines 17 through 19 must be

nonqualified per-unit retain certificates. (See

Revenue Code of 1986 or corresponding

completed for the current year and each of

sections 1382 and 1388.)

provisions of prior law.

the 3 immediately preceding years (or for the

Line 15—Other Expenditures.—In the

time the organization has existed if less than

F. User Fees for Exempt

attached schedule for other expenditures,

4 years). The requested information for the

Organization Ruling and

include a breakdown for nonpatronage

current year must cover the period beginning

distributions paid as dividends on capital

Determination Requests

on the first day of your organization’s

stock and nonpatronage distributions made

established annual accounting period and

The Internal Revenue Service is required to

on a patronage basis. This breakdown should

ending on any day which is within 60 days of

collect a fee from any organization seeking an

include only distributions of earnings derived

the date of the application. If the date of the

IRS determination of its exempt status as an

from business done for the United States

application is less than 60 days after the first

organization described in section 521. A fee

Government or any of its agencies or income

day of the current accounting period, no

also applies to any exempt organization’s

from sources other than patronage, but only

information is required for the current year.

request for a private letter ruling.

to the extent such amounts are paid in the

Requested information is required for the 3

same manner provided for patronage

The nonrefundable fee must be submitted

preceding years regardless of the current year

dividends below. The term “income from

with the application or ruling request.

requirement. Please note that if no

sources other than patronage” means

Otherwise, the request will be returned

information is required for the current year,

incidental income derived from sources not

without any action being taken on it.

the preceding year’s information period can

directly related to the marketing, purchasing

end on any day which is within 60 days of the

The fees are shown in Form 8718, User

or service activities of the cooperative

Fee for Exempt Organization Determination

date of the application.

association. For example, income derived

Letter Request, that is used to transmit both

Definitions.—The term “producer” means an

from the lease of premises, from investment

the appropriate fee and the application or

individual or corporation engaged in farming

in securities, or from the sale or exchange of

ruling request.

as a business receiving income based on

capital assets constitutes income from

farm production rather than fixed

Specific Instructions

sources other than patronage.

compensation. For example, a corporation

Also include in the schedule the total

leases its land to a tenant farmer who agrees

Part I—Identification

amount of per-unit retain allocations other

to pay a rental fee based on a percentage of

than those reflected in cost of sales on line

Line 1a—Organization’s Name.—Enter the

the farm crops produced. Both the landowner

3b and the total amount of written notices of

organization’s name as it appears in its

and the tenant farmer qualify as producers.

allocation other than those reflected on line

organizing documents, including

“Current and active” producers are patrons

16. (See sections 1382 and 1388.)

amendments. If the organization will be

of a cooperative who market more than 50%

operated under another name, show that

Line 16—Patronage Dividends.—In the

of their products or purchase more than 50%

name in parentheses.

attached schedule, show the amount of

of their supplies and equipment through the

patronage dividends paid to patrons in

Line 1b—Employer Identification Number

cooperative during the cooperative’s tax year.

money, qualified written notices of allocation,

(EIN).—If the organization does not have an

Part IV—Financial Data

or other property (except non-qualified written

EIN, obtain one by telephone. Get Form

notices of allocation) and the amount paid to

SS-4, Application for Employer Identificaton

The statement of receipts and expenditures

patrons in money or other property (except

Number, for details on how to obtain an EIN

and the balance sheet must be completed for

written notices of allocation) to redeem

immediately by telephone. If the organization

the current year and each of the 3

nonqualified written notices of allocation. (See

has previously applied for a number, enter

immediately preceding years (or for the time

sections 1382 and 1388 and the related

“applied for” and attach a statement giving

the organization has existed if less than 4

regulations.)

the date of the application and office where it

years). We may request financial data for

was filed. Do not apply more than once for

more than 4 years if circumstances warrant.

an EIN.

Page 2

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Instructions For Form 1028 Page 2

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