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Fiscal year. A fiscal year is 12

Depositing on time. For EFTPS

Overpaid estimated tax. If the

consecutive months ending on the last

deposits to be made timely, the

cooperative overpaid estimated tax, it

day of any month except December. A

cooperative must initiate the transaction

may be able to get a quick refund by filing

52 – 53-week year is a fiscal year that

at least 1 business day before the date

Form 4466, Corporation Application for

varies from 52 to 53 weeks.

the deposit is due.

Quick Refund of Overpayment of

Estimated Tax. The overpayment must be

Adoption of tax year. A cooperative

Deposits with Form 8109. If the

at least 10% of expected income tax

adopts a tax year when it files its first

cooperative does not use EFTPS, deposit

liability and be at least $500. File Form

income tax return. It must adopt a tax

cooperative income tax payments (and

4466 before the 16th day of the 3rd

year by the due date (not including

estimated tax payments) with Form 8109,

month after the end of the tax year, but

extensions) of its first income tax return.

Federal Tax Deposit Coupon. If you do

before the cooperative files its tax return.

not have a preprinted Form 8109, use

Change in tax year. Generally, a

Do not file Form 4466 before the end of

Form 8109-B to make deposits. You can

cooperative must get the consent of the

the cooperative’s tax year.

get this form by calling 1-800-829-1040.

IRS before changing its tax year by filing

Be sure to have your EIN ready when you

Form 1128, Application To Adopt,

Interest and Penalties

call.

Change, or Retain a Tax Year. However,

under certain conditions, a cooperative

Do not send deposits directly to an IRS

Interest. Interest is charged on taxes

may change its tax year without getting

office; otherwise, the cooperative may

paid late even if an extension of time to

the consent. See Regulations section

have to pay a penalty. Mail or deliver the

file is granted. Interest is also charged on

1.442-1 and Pub. 538.

completed Form 8109 with the payment

penalties imposed for failure to file,

to an authorized depositary, i.e., a

negligence, fraud, gross valuation

Rounding Off to Whole

commercial bank or other financial

overstatements, and substantial

Dollars

institution authorized to accept Federal

understatements of tax from the due date

tax deposits. Make checks or money

(including extensions) to the date of

The cooperative may show amounts on

orders payable to the depositary.

payment. The interest charge is figured at

the return and accompanying schedules

a rate determined under section 6621.

If the cooperative prefers, it may mail

as whole dollars. To do so, drop any

the coupon and payment to: Financial

amount less than 50 cents and increase

Penalty for late filing of return. A

Agent, Federal Tax Deposit Processing,

any amount from 50 cents through 99

cooperative that does not file its tax return

P.O. Box 970030, St. Louis, MO 63197.

cents to the next higher dollar.

by the due date, including extensions,

Make the check or money order payable

may be penalized 5% of the unpaid tax

Recordkeeping

to “Financial Agent.”

for each month or part of a month the

Keep the cooperative’s records for as

To help ensure proper crediting, write

return is late, up to a maximum of 25% of

long as they may be needed for the

the cooperative’s EIN, the tax period to

the unpaid tax. The minimum penalty for

administration of any provision of the

which the deposit applies, and “Form

a return that is over 60 days late is the

Internal Revenue Code. Usually, records

990-C” on the check or money order. Be

smaller of the tax due or $100. The

that support an item of income, deduction,

sure to darken the “990-C” box on the

penalty will not be imposed if the

or credit on the return must be kept for 3

coupon. Records of these deposits will be

cooperative can show that the failure to

years from the date the return is due or

sent to the IRS.

file on time was due to reasonable cause.

filed, whichever is later. Keep records that

Cooperatives that file late must attach a

For more information on deposits, see

verify the cooperative’s basis in property

statement explaining the reasonable

the instructions in the coupon booklet

for as long as they are needed to figure

cause.

(Form 8109) and Pub. 583, Starting a

the basis of the original or replacement

Business and Keeping Records.

Penalty for late payment of tax. A

property.

cooperative that does not pay the tax

If the cooperative owes tax when it

The cooperative should also keep

when due generally may be penalized

files Form 990-C, do not include

copies of all returns. They help in

of 1% of the unpaid tax for each month or

the payment with the tax return.

CAUTION

preparing future and amended returns.

part of a month the tax is not paid, up to a

Instead, mail or deliver the payment with

maximum of 25% of the unpaid tax. The

Form 8109 to an authorized depositary or

Depository Method of Tax

penalty will not be imposed if the

use EFTPS, if applicable.

Payment

cooperative can show that the failure to

pay on time was due to reasonable

Estimated Tax Payments

The cooperative must pay the tax due in

cause.

full no later than the 15th day of the 9th

Generally, the following rules apply to the

month after the end of the tax year. The

cooperative’s payments of estimated tax.

Trust fund recovery penalty. This

•

two methods of depositing cooperative

The cooperative must make installment

penalty may apply if certain excise,

income taxes are discussed below.

payments of estimated tax if it expects its

income, social security, and Medicare

Electronic Deposit Requirement. The

total tax for the year (less applicable

taxes that must be collected or withheld

cooperative must make electronic

credits) to be $500 or more.

are not collected or withheld, or these

•

deposits of all depository taxes (such as

The installments are due by the 15th

taxes are not paid to the IRS. These

employment tax, excise tax, and

day of the 4th, 6th, 9th, and 12th months

taxes are generally reported on Forms

corporate income tax) using the

of the tax year. If any date falls on a

720, 941, 943, or 945 (see Other Forms,

Electronic Federal Tax Payment System

Saturday, Sunday, or legal holiday, the

Returns, and Statements That May Be

(EFTPS) in 2002 if:

installment is due on the next regular

Required on page 2). The trust fund

•

recovery penalty may be imposed on all

The total deposits of such taxes in

business day.

•

persons who are determined by the IRS

2000 were more than $200,000 or

Use Form 1120-W, Estimated Tax for

•

to have been responsible for collecting,

The cooperative was required to use

Corporations, as a worksheet to compute

accounting for, and paying over these

EFTPS in 2001.

estimated tax.

•

taxes, and who acted willfully in not doing

If the cooperative is required to use

If the cooperative does not use EFTPS,

so. The penalty is equal to the unpaid

EFTPS and fails to do so, it may be

use the deposit coupons (Form 8109) to

trust fund tax. See the instructions for

subject to a 10% penalty. If the

make deposits of estimated tax.

Form 720, Pub. 15 (Circular E),

cooperative is not required to use EFTPS,

For more information on estimated tax

Employer’s Tax Guide, or Pub. 51

it may participate voluntarily. To enroll in

payments, including penalties that apply if

(Circular A), Agricultural Employer’s Tax

or get more information about EFTPS,

the cooperative fails to make required

Guide, for details, including the definition

call 1-800-555-4477 or 1-800-945-8400.

payments, see the instructions for line 33

of responsible persons.

To enroll online, visit

on page 12.

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Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - 2001 Page 5

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