Form 3491 Consumer Cooperative Exemption Application

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Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3491 PAGE 1 of 2
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
279mm (11")
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

3491

Action

Date

Signature

O.K. to print
Revised proofs
requested

Consumer Cooperative Exemption Application

OMB No. 1545-1941

(For Exemption From Filing Forms 1099-PATR)

File in duplicate.

(Rev. June 2005)
Department of the Treasury
Internal Revenue Service

This application is for certain consumer cooperatives that are engaged primarily in retail sales of goods or services
that are generally for personal, living, or family use. See the instructions on the back of this form.
1a Name of organization
2

b

Employer identification number

4

Month and day on which the annual
accounting period ends

Number, street, and room or suite no. (If a P.O. box, see instructions.)
City, state, and ZIP code

3

Principal activity of the organization

5

Has the organization filed a federal income tax return(s)?
Yes
If “Yes,” enter the form number(s) of the return(s) filed and the Internal Revenue Service location where filed.
Form Number

6

No

IRS Location

Gross Receipts

Period

(1)

(2)

(3)

Part of total receipts from retail sales of
goods or services that is generally for
personal, living, or family use

Other receipts

Total receipts
(add (1) and (2))

a First preceding year

$

$

$

b Second preceding year

$

$

$

c Third preceding year

$

$

$

$
d Total
$
*Note: If line a, column (4), is at least 85%, do not complete lines b, c, and d.

(4)*
Percentage
(Divide (1) by (3)
and multiply by
100)

%

$

%

Under penalties of perjury, I declare that I have examined this application, including any accompanying statements, and, to the best of my knowledge
and belief, it is true, correct, and complete.

Signature of officer
Title

䊳

䊳

Date

䊳

Date

䊳

Notice to Applicant—To be completed by the Internal Revenue Service
We have approved your application.
We have not approved your application because

Director

䊳
Cat. No. 19756J

Form

3491

(Rev. 6-2005)

4
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3491, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ") x 279mm (11")
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 3491 (Rev. 6-2005)

Instructions
Section references are to the Internal Revenue Code unless
otherwise noted.

Purpose of Form
A cooperative may use this form to apply for exemption
(under section 6044(c)) from filing Form 1099-PATR, Taxable
Distributions Received From Cooperatives. Form 1099-PATR
is used to report patronage distributions of $10 or more to a
recipient during the calendar year. The IRS will return this
application to you showing whether the application has or
has not been approved.

Who Must File
To qualify for the exemption, Regulations section
1.6044-4(a)(2) requires that 85% of the cooperative’s gross
receipts for the preceding tax year, or 85% of its total gross
receipts for the preceding 3 tax years, must have been from
retail sales of goods or services that are generally for
personal, living, or family use (qualifying retail sales).

Period of Exemption
The period of exemption begins with the date the first
payment is made during the calendar year in which
exemption is approved. It ends on the date the first payment
is made after the end of the cooperative’s first tax year in
which less than 70% of the gross receipts is from qualifying
retail sales (see Regulations section 1.6044-4(a)(3)).

Examples for Calendar Year Cooperatives
Example 1. In September 2003, Oak Cooperative’s
application for exemption from filing Forms 1099-PATR is
approved. In October 2003, Oak made the first patronage
payments for the year. For the tax year ending December 31,
2005, less than 70% of Oak’s gross receipts are from
qualifying retail sales. In November 2006, Oak made the first
patronage payments for the year.
Oak’s exemption period begins October 2003 and ends
November 2006. Oak does not have to file Forms 1099-PATR
for 2003, 2004, and 2005, but must file for 2006.
Example 2. The facts are the same as in Example 1 except
Oak made the first payment for 2003 in February, before the
exemption is approved. The result is the same. Oak does not
have to file Forms 1099-PATR for 2003, 2004, and 2005, but
must file for 2006.
Example 3. In September 2003, Maple Cooperative’s
application for exemption from filing Forms 1099-PATR is
approved. In October 2003, Maple made the first patronage
payments for the year. For the year ending December 31,
2003, less than 70% of Maple’s gross receipts are from
qualifying retail sales. In March 2004, Maple made the first
patronage payments for the year.
Maple’s exemption period begins October 2003 and ends
March 2004. Maple does not have to file Forms 1099-PATR
for 2003 only.

Examples for Fiscal Year Cooperatives
(July 1–June 30)
Example 1. In September 2003, Cedar Cooperative’s
application for exemption from filing Forms 1099-PATR is
approved. In October 2003, Cedar made the first patronage
payments for the year. For the tax year ending June 30,
2006, less than 70% of Cedar’s gross receipts are from
qualifying retail sales. In November 2006, Cedar made the
first patronage payments for the new fiscal year.

Page

2

Cedar’s exemption period begins October 2003 and ends
November 2006. Cedar does not have to file Forms
1099-PATR for 2003, 2004, and 2005, but must file for 2006.
Example 2. The facts are the same as in Example 1 except
Cedar made the first payment for 2003 in February, before
the exemption is approved. The result is the same. Cedar
does not have to file Forms 1099-PATR for 2003, 2004, and
2005, but must file for 2006.
Example 3. In September 2003, Elm Cooperative’s
application for exemption from filing Forms 1099-PATR is
approved. In October 2003, Elm made the first patronage
payments for the year. For the tax year ending June 30,
2004, less than 70% of Elm’s gross receipts are from
qualifying retail sales. In August 2004, Elm made the first
patronage payments for the new fiscal year.
Elm’s exemption period begins October 2003 and ends
August 2004. Elm does not have to file Forms 1099-PATR for
2003 only.

How To Prepare the Form
Complete all items on the form. An officer authorized to sign
for the cooperative must sign and date the form.
P.O. Box. If the Post Office does not deliver mail to the
street address and the cooperative has a P.O. box, show the
box number instead of the street address.

Where To File
Send two copies of the form to:
Ogden Submission Processing Center
P.O. Box 9941
Ogden, UT 84409

Paperwork Reduction Act Notice
We ask for the information on this form to carry out the
Internal Revenue laws of the United States. If you want your
organization to be considered exempt from filing Form
1099-PATR, you are required to give us this information. We
need it to determine whether the organization meets the
requirements of section 6044(c) for exemption status.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in
the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
average time for preparing the form is 44 minutes.
If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can write to
Internal Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.
NW, IR-6406, Washington, DC 20224. Do not send the tax
form to this address. Instead, see Where To File.