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Instructions for Recipient

Box 4. Shows backup withholding. Generally, a payer must backup

withhold at a 28% rate if you did not furnish your taxpayer identification

What’s new. See box 6 for a new deduction that may be available to

number to the payer. See Form W-9, Request for Taxpayer Identification

you. See box 10 for new pass-through credits.

Number and Certification, for information on backup withholding. Include

this amount on your income tax return as tax withheld.

Distributions you received from a cooperative may be includible in your

income. Generally, if you are an individual, report any amounts shown in

Box 5. Shows amounts you received when you redeemed nonqualified

boxes 1, 2, 3, and 5 as income, unless nontaxable, on Schedule F (Form

written notices of allocation and nonqualified per-unit retain allocations.

1040), Profit or Loss From Farming; Schedule C (Form 1040), Profit or

Because these were not taxable when issued to you, you must report the

Loss From Business; Schedule C-EZ (Form 1040), Net Profit From

redemption as ordinary income to the extent of the stated dollar value.

Business; or Form 4835, Farm Rental Income and Expenses. See the

Box 6. Shows the deduction amount you may take based on your portion

instructions for Schedule F (Form 1040) and Pub. 225, Farmer’s Tax

of patronage dividends or per-unit retain allocations (boxes 1 and 3)

Guide, for more information.

attributable to qualified production activities income. To claim the

Account number. May show an account or other unique number the

deduction amount, this amount must have been designated in a written

payer assigned to distinguish your account.

notice sent to you from the cooperative within the payment period under

section 1382(d). Enter on the appropriate line of Form 8903, Domestic

Box 1. Shows patronage dividends paid to you during the year in cash,

Production Activities Deduction.

qualified written notices of allocation (at stated dollar value), or other

Boxes 7, 8, and 10. These boxes may show unused credits passed

property (not including nonqualified allocations). Any of the dividends that

through to you by the cooperative. Report these credits on the following

were paid on (1) property bought for personal use or (2) capital assets or

forms: 3468—investment credit; 5884—work opportunity credit;

depreciable property used in your business are not taxable. However, if

6478—small ethanol producer credit; 8844—empowerment zone and

(2) applies, reduce the basis of the assets by this amount.

renewal community employment credit; 8845—Indian employment credit;

Box 2. Shows nonpatronage distributions paid to you during the year in

8861—welfare-to-work credit; 8896—low sulfur diesel fuel production

cash, qualified written notices of allocation, or other property (not

credit. See the Form 1040 instructions for how to report other credits.

including nonqualified written notices of allocation).

Box 9. Shows the alternative minimum tax (AMT) adjustment passed

Box 3. Shows per-unit retain allocations paid to you during the year in

through to you by the cooperative. Report this amount on Form 6251,

cash, qualified per-unit retain certificates, or other property.

Alternative Minimum Tax—Individuals, on the appropriate line in Part I.

Instructions For Form 1099-Patr - Federal Taxable Distributions Received From Cooperatives - 2005

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