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return. It does not apply to the firm, if

Any other method authorized by the

The cooperative should also keep

any, shown in that section.

Internal Revenue Code.

copies of all returns. They help in

preparing future and amended returns.

If the “Yes” box is checked, the

See Pub. 538, Accounting Periods

cooperative is authorizing the IRS to

and Methods, for more information.

Depository Methods of

call the paid preparer to answer any

Change in accounting method. To

questions that may arise during the

Tax Payment

change its method of accounting used

processing of its return. The

to report taxable income (for income as

The cooperative must pay any tax due

cooperative is also authorizing the paid

a whole or for the treatment of any

in full no later than the 15th day of the

preparer to:

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material item), the cooperative must file

9th month after the end of the tax year.

Give the IRS any information that is

Form 3115, Application for Change in

The two methods of depositing taxes

missing from the return,

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Accounting Method. For more

are discussed below.

Call the IRS for information about the

information, see Form 3115, Pub. 538,

processing of the return or the status of

Electronic Deposit Requirement. The

Accounting Periods and Methods, and

any related refund or payment(s), and

cooperative must make electronic

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Pub. 542, Corporations.

Respond to certain IRS notices about

deposits of all depository taxes (such

math errors, offsets, and return

as employment tax, excise tax, and

Accounting Period

preparation.

corporate income tax) using the

Electronic Federal Tax Payment

A cooperative must figure its taxable

The cooperative is not authorizing

System (EFTPS) in 2006 if:

income on the basis of a tax year. A tax

the paid preparer to receive any refund

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The total deposits of such taxes in

year is the annual accounting period a

check, bind the cooperative to anything

2004 were more than $200,000 or

cooperative uses to keep its records

(including any additional tax liability), or

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The cooperative was required to use

and report its income and expenses.

otherwise represent the cooperative

EFTPS in 2005.

before the IRS. If the cooperative wants

Generally, cooperatives can use a

calendar year or a fiscal year.

If the cooperative is required to use

to expand the paid preparer’s

EFTPS and fails to do so, it may be

authorization, see Pub. 947, Practice

Change of tax year. Generally, a

subject to a 10% penalty. If the

Before the IRS and Power of Attorney.

cooperative must get the consent of the

cooperative is not required to use

The authorization will automatically

IRS before changing its tax year by

EFTPS, it can participate voluntarily. To

end no later than the due date

filing Form 1128, Application to Adopt,

enroll in or get more information about

(excluding extensions) for filing the

Change, or Retain a Tax Year.

EFTPS, call 1-800-555-4477. To enroll

cooperative’s 2006 tax return.

However, under certain conditions, a

online, visit

cooperative can change its tax year

Depositing on time. For EFTPS

Assembling the Return

without getting a consent.

deposits to be made timely, the

To ensure that the cooperative’s tax

For more information about

cooperative must initiate the transaction

return is correctly processed, attach all

accounting periods, tax year, and

at least 1 business day before the date

schedules and other forms after page

change of tax year, see Form 1128 and

the deposit is due.

5, Form 990-C, in the following order.

Pub. 538.

Deposit with Form 8109. If the

1. Form 8302.

cooperative does not use EFTPS,

2. Form 4136.

Rounding Off to Whole

deposit cooperative income tax

3. Form 4626.

payments (and estimated tax

Dollars

4. Form 851.

payments) with Form 8109, Federal

5. Additional schedules in

The cooperative can round off cents to

Tax Deposit Coupon. If you do not have

alphabetical order.

whole dollars on its return and

a preprinted Form 8109, use Form

6. Additional forms in numerical

schedules. If the cooperative does

8109-B to make deposits. You can get

order.

round to whole dollars, it must round all

this form by calling 1-800-829-4933 or

amounts. To round, drop amounts

visiting an IRS taxpayer assistance

Complete every applicable entry

under 50 cents and increase amounts

center. Have your EIN ready when you

space on Form 990-C. Do not write

from 50 to 99 cents to the next dollar

call or visit.

“See Attached” instead of completing

(for example, $1.39 becomes $1 and

Do not send deposits directly to an

the entry spaces. If more space is

$2.50 becomes $3).

IRS office; otherwise, the cooperative

needed on the forms or schedules,

If two or more amounts must be

may have to pay a penalty. Mail or

attach separate sheets, using the same

added to figure the amount to enter on

deliver the completed Form 8109 with

size and format as the printed forms. If

a line, include cents when adding the

the payment to an authorized

there are supporting statements and

depositary (a commercial bank or other

amounts and round off only the total.

attachments, arrange them in the same

financial institution authorized to accept

order as the schedules or forms they

federal tax deposits). Make checks or

Recordkeeping

support and attach them last. Show the

money orders payable to the

totals on the printed forms. Enter the

Keep the cooperative’s records for as

depositary.

cooperative’s name and EIN on each

long as they may be needed for the

supporting statement or attachment.

If the cooperative prefers, it may mail

administration of any provision of the

the coupon and payment to: Financial

Internal Revenue Code. Usually,

Accounting Methods

Agent, Federal Tax Deposit Processing,

records that support an item of income,

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

Figure taxable income using the

deduction, or credit on the return must

Make the check or money order

method of accounting regularly used in

be kept for 3 years from the date the

payable to “Financial Agent.”

keeping the cooperative’s books and

return is due or filed, whichever is later.

records. In all cases, the method used

Keep records that verify the

To help ensure proper crediting,

must clearly show taxable income.

cooperative’s basis in property for as

enter the cooperative’s EIN, the tax

Permissible methods include:

long as they are needed to figure the

period to which the deposit applies, and

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Cash,

basis of the original or replacement

“Form 990-C” on the check or money

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Accrual, or

property.

order. Darken the “990-C” box under

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Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - Internal Revenue Service - 2005 Page 3

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