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member of a controlled group for this

owned by one or more of the other

purpose.

cooperatives in the group and

Paperwork Reduction Act Notice. We

2. The common parent must own at

ask for the information on this form to

Affiliated group. The term “affiliated

least 80% of the total combined voting

carry out the Internal Revenue laws of the

group” means one or more chains of

power of all classes of stock entitled to

United States. You are required to give us

includible corporations (section 1504(a))

vote or at least 80% of the total value of

the information. We need it to ensure that

connected through stock ownership with a

all classes of stock of one or more of the

you are complying with these laws and to

common parent corporation. The common

other cooperatives in the group. Stock

allow us to figure and collect the right

parent must be an includible corporation

owned directly by other members of the

amount of tax.

and the following requirements must be

group is not counted when computing the

met:

You are not required to provide the

voting power or value.

1. The common parent must directly

information requested on a form that is

See section 1563(d)(1) for the

own stock that represents at least 80% of

subject to the Paperwork Reduction Act

definition of “stock” for purposes of

the total voting power and at least 80% of

unless the form displays a valid OMB

determining stock ownership above.

the total value of the stock of at least one

control number. Books or records relating

of the other includible cooperatives and

to a form or its instructions must be

Item 19

2. Stock that represents at least 80%

retained as long as their contents may

If the cooperative has an NOL for its 2002

of the total voting power and at least 80%

become material in the administration of

tax year, it may elect under section

of the total value of the stock of each of

any Internal Revenue law. Generally, tax

172(b)(3) to waive the entire carryback

the other corporations (except for the

returns and return information are

period for the NOL and instead carry the

common parent) must be owned directly

confidential, as required by section 6103.

NOL forward to future tax years. To do

by one or more of the other includible

so, check the box in item 19 and file the

The time needed to complete and file

corporations.

return by its due date, including

this form will vary depending on individual

For this purpose, stock generally does

extensions (do not attach the statement

circumstances. The estimated average

not include any stock that (a) is

described in Temporary Regulations

time is:

nonvoting, (b) is nonconvertible, (c) is

section 301.9100-12T). Once made, the

limited and preferred as to dividends and

election is irrevocable. See Pub. 542,

Recordkeeping . . . . . . . .

75 hr., 34 min.

does not participate significantly in

section 172, and Form 1139 for more

Learning about the law or

corporate growth, and (d) has redemption

the form . . . . . . . . . . . . .

24 hr., 55 min.

details.

and liquidation rights that do not exceed

Preparing the form . . . . . .

43 hr., 5 min.

Cooperatives filing a consolidated

the issue price of the stock (except for a

Copying, assembling, and

return must check the box and attach the

reasonable redemption or liquidation

sending the form to the IRS

4 hr., 33 min.

statement required by Regulations

premium). See section 1504(a)(4).

section 1.1502-21(b)(3)(i) or (ii).

If you have comments concerning the

Parent-subsidiary controlled group.

Item 20

accuracy of these time estimates or

The term “parent-subsidiary controlled

suggestions for making this form simpler,

group” means one or more chains of

Enter the amount of the NOL carryover to

we would be happy to hear from you. You

cooperatives connected through stock

the tax year from prior years, even if

can write to the Tax Forms Committee,

ownership (section 1563(a)(1)). Both of

some of the loss is used to offset income

Western Area Distribution Center,

the following requirements must be met:

on this return. The amount to enter is the

Rancho Cordova, CA 95743-0001.

1. At least 80% of the total combined

total of all NOLs generated in prior years

voting power of all classes of voting stock

but not used to offset income (either as a

Do not send the tax form to this office.

or at least 80% of the total value of all

carryback or carryover) in a tax year prior

Instead, see Where To File on page 2.

classes of stock of each cooperative in

to 2002. Do not reduce the amount by

the group (except the parent) must be

any NOL deduction reported on line 29a.

-18-

Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - Internal Revenue Service - 2002 Page 18

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