Instructions For Form 1099-Patr - 2018

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2018
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1099-PATR
Taxable Distributions Received From Cooperatives
Section references are to the Internal Revenue Code unless
Truncating recipient's TIN on payee statements. Pursuant
otherwise noted.
to Treasury Regulation section 301.6109-4, all filers of this form
may truncate a payee’s TIN (social security number (SSN),
Future Developments
individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer identification
For the latest information about developments related to Form
number (EIN)) on payee statements. Truncation is not allowed
1099-PATR and its instructions, such as legislation enacted after
on any documents the filer files with the IRS. A filer’s TIN may
they were published, go to IRS.gov/form1099patr.
not be truncated on any form. See part J in the 2018 General
Instructions for Certain Information Returns.
Reminder
2nd TIN Not.
In addition to these specific instructions, you should also use the
2018 General Instructions for Certain Information Returns.
You may enter an “X” in this box if you were notified by the IRS
Those general instructions include information about the
twice within 3 calendar years that the payee provided an
following topics.
incorrect TIN. If you mark this box, the IRS will not send you any
Who must file (nominee/middleman).
further notices about this account.
When and where to file.
However, if you received both IRS notices in the same year,
Electronic reporting requirements.
or if you received them in different years but they both related to
Corrected and void returns.
information returns filed for the same year, do not check the box
Statements to recipients.
at this time. For purposes of the two-notices-in-3-years rule, you
Taxpayer identification numbers (TINs).
are considered to have received one notice and you are not
Backup withholding.
required to send a second “B” notice to the taxpayer on receipt
Penalties.
of the second notice. See part N in the 2018 General Instructions
Other general topics.
for Certain Information Returns for more information.
You can get the general instructions at
IRS.gov/
.
1099generalinstructions.
For information on the TIN Matching system offered by
Specific Instructions
the IRS, see Items You Should Note in the 2018 General
TIP
Instructions for Certain Information Returns.
File Form 1099-PATR, Taxable Distributions Received From
Cooperatives, for each person to whom the cooperative has paid
Account Number
at least $10 in patronage dividends and other distributions
described in section 6044(b) or from whom you withheld any
The account number is required if you have multiple accounts for
federal income tax under the backup withholding rules
a recipient for whom you are filing more than one Form
regardless of the amount of the payment. A cooperative
1099-PATR. Additionally, the IRS encourages you to designate
determined to be primarily engaged in the retail sale of goods or
an account number for all Forms 1099-PATR that you file. See
services that are generally for personal, living, or family use of
part L in the 2018 General Instructions for Certain Information
the members may ask for and receive exemption from filing
Returns.
Form 1099-PATR. See Form 3491, Consumer Cooperative
Box 1. Patronage Dividends
Exemption Application, for information about how to apply for
this exemption. Report dividends paid on a cooperative's capital
Enter the total patronage dividends paid in cash (including
stock on Form 1099-DIV, Dividends and Distributions.
qualified or “consent” checks), qualified written notices of
allocation (face amount), and other property (except
Report on Form 1099-PATR only items of income,
expenses, and credits that you properly pass through to
nonqualified written notices of allocation).
!
patrons for reporting on the patron's tax return.
CAUTION
Box 2. Nonpatronage Distributions
Exceptions. Generally, you are not required to file Form
For farmers’ cooperatives exempt from tax under section 521
1099-PATR for payments made to a corporation, a tax-exempt
only, enter the amount paid in cash (including qualified or
organization including tax-exempt trusts (HSAs, Archer MSAs,
“consent checks”), qualified written notices of allocation (face
and Coverdell ESAs), the United States, a state, a possession,
amount), and other property (except nonqualified written notices
or the District of Columbia. See Regulations section 1.6044-3(c).
of allocation) on a patronage basis with respect to the
cooperative’s earnings that are derived from business done for
Statements to Recipients
the United States or any agency thereof or from nonpatronage
If you are required to file Form 1099-PATR, you must furnish a
sources.
statement to the recipient. For more information about the
requirement to furnish statements to recipients, see part M in the
2018 General Instructions for Certain Information Returns.
Sep 11, 2017
Cat. No. 27984F

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