Instructions For Form 1099-Patr - 2006
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25Instructions for Recipient
Certification, for information on backup withholding. Include this amount on
Reminder. See box 6 for a new deduction that may be available to you. See
your income tax return as tax withheld.
box 10 for new pass-through credits and an additional new deduction.
Box 5. Shows amounts you received when you redeemed nonqualified written
notices of allocation and nonqualified per-unit retain allocations. Because
Distributions you received from a cooperative may be includible in your
income. Generally, if you are an individual, report any amounts shown in boxes
these were not taxable when issued to you, you must report the redemption as
1, 2, 3, and 5 as income, unless nontaxable, on Schedule F (Form 1040), Profit
ordinary income to the extent of the stated dollar value.
or Loss From Farming; Schedule C (Form 1040), Profit or Loss From Business;
Box 6. Shows the deduction amount you may take based on your portion of
Schedule C-EZ (Form 1040), Net Profit From Business; or Form 4835, Farm
patronage dividends or per-unit retain allocations (boxes 1 and 3) attributable
Rental Income and Expenses. See the instructions for Schedule F (Form 1040)
to qualified production activities income. To claim the deduction amount, this
and Pub. 225, Farmer’s Tax Guide, for more information.
amount must have been designated in a written notice sent to you from the
cooperative within the payment period under section 1382(d). Enter on the
Account number. May show an account or other unique number the payer
appropriate line of Form 8903, Domestic Production Activities Deduction.
assigned to distinguish your account.
Boxes 7, 8, and 10. These boxes may show unused credits and deductions
Box 1. Shows patronage dividends paid to you during the year in cash,
passed through to you by the cooperative. Report these credits on the
qualified written notices of allocation (at stated dollar value), or other property
following forms: 3468—investment credit; 5884—work opportunity credit;
(not including nonqualified allocations). Any of the dividends that were paid on
5884-A—employee retention credit; 6478—small ethanol producer credit;
(1) property bought for personal use or (2) capital assets or depreciable
8835—renewable electricity, refined coal, and Indian coal production credit;
property used in your business are not taxable. However, if (2) applies, reduce
8844—empowerment zone and renewal community employment credit;
the basis of the assets by this amount.
8845—Indian employment credit; 8861—welfare-to-work credit; 8864—small
Box 2. Shows nonpatronage distributions paid to you during the year in cash,
agri-biodiesel producer credit; and 8896—low sulfur diesel fuel production
qualified written notices of allocation, or other property (not including
credit. A deduction for capital costs incurred by small refiner cooperatives
nonqualified written notices of allocation).
when complying with EPA sulfur regulations may also be passed through to
you. See the Form 1040 Instructions for how to report other credits and
Box 3. Shows per-unit retain allocations paid to you during the year in cash,
deductions.
qualified per-unit retain certificates, or other property.
Box 9. Shows the alternative minimum tax (AMT) adjustment passed through
Box 4. Shows backup withholding. Generally, a payer must backup withhold at
to you by the cooperative. Report this amount on Form 6251, Alternative
a 28% rate if you did not furnish your taxpayer identification number to the
Minimum Tax—Individuals, on the appropriate line in Part I.
payer. See Form W-9, Request for Taxpayer Identification Number and
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