1120-C U.S. Income Tax Return for Cooperative Associations

A
1
2
3

Tax, Refundable Credits, and Payments Deductions (See instructions for limitations on deductions.)

Income

D

Check if:
Consolidated return
(attach Form 851)
Schedule M-3 (Form
1120) attached
Form 1120 filed in
previous tax year

Check if:

(1)

U.S. Income Tax Return for Cooperative Associations

For calendar year 2009 or tax year beginning
, 2009, ending
© See separate instructions.
Please type or print

1120-C

Form
Department of the Treasury
Internal Revenue Service

2009

Name

B Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

C
(1)

City or town, state, and ZIP code

Check if:
Farmers’ tax exempt
cooperative . . .

(2)

Nonexempt
cooperative .

Initial return

(2)

Final return

(3)

Name change

(4)

Address change

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25
26

b Less returns and allowances
c Bal ©
Gross receipts or sales
Cost of goods sold (Schedule A, line 9) . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . .
Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross rents and royalties . . . . . . . . . . . . . . . . . . . . . . .
Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . .
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . .
Other income (see instructions—attach schedule) . . . . . . . . . . . . . . .
Total income. Add lines 3 through 9
. . . . . . . . . . . . . . . . . . ©
Compensation of officers (Schedule E, line 4) . . . . . . . . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed in Schedule A or elsewhere on return (attach Form 4562) . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . .
Employee benefit programs
. . . . . . . . . . . . . . . . . . . . . .
Domestic production activities deduction (attach Form 8903)
. . . . . . . . . . .
Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 11 through 23 . . . . . . . . . . . . . . . . ©
Taxable income before section 1382, NOL, and special deductions. Subtract line 24 from line 10
Less: a Deductions and adjustments under section 1382
(Schedule H, line 5) . . . . . . . . . . . . . 26a
b Net operating loss deduction (see instructions) . . . . 26b
c Special deductions (Schedule C, line 20) . . . . . . 26c
27
Taxable income. Subtract line 26d from line 25 (see instructions) . . . . . . . . . . . .
28
Total tax (Schedule J, line 9) . . . . . . . . . . . . . . . . . . . . . .
29a 2008 overpayment credited to 2009 29a
b 2009 estimated tax payments . . 29b
) d Bal © 29d
c 2009 refund applied for on Form 4466 29c (
e Tax deposited with Form 7004
. . . . . . . . . . . . 29e
f Credits: (1) Form 2439
29f
(2) Form 4136
g Refundable credits from Form 3800, line 19c, and Form 8827, line 8c 29g
h Section 1383 adjustment (see instructions)
. . . . . . . . 29h
30
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . ©
31
Amount owed. If line 29i is smaller than the total of lines 28 and 30, enter amount owed . .
32
Overpayment. If line 29i is larger than the total of lines 28 and 30, enter amount overpaid . .
33
Enter amount of line 32 you want: Credited to 2010 estimated tax ©
Refunded ©

Sign
Here

OMB No. 1545-2052

, 20

(5)

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Amended return

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25

26d
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28

29i
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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

©

Signature of officer

Paid
Preparer’s
Use Only

Preparer’s
signature

Date

©

Firm’s name (or
yours if self-employed),
address, and ZIP code

©

May the IRS discuss this return
with the preparer shown below
(see instructions)?
Yes No

Title

Date

©

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Check if
self-employed

Preparer’s SSN or PTIN

EIN
Phone no.
Cat. No. 47554F

Form 1120-C (2009)

Page 2

Form 1120-C (2009)

Schedule A
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4
a
b
5
6a
b
7
8
9
10a

b
c
d
e
f

1
Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . .
2
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . .
Per-unit retain allocations paid in:
4a
Qualified per-unit retain certificates . . . . . . . . . . . . . . . . . . .
4b
Money or other property (except nonqualified per-unit certificates) . . . . . . . . .
5
Nonqualified per-unit retain certificates redeemed this year . . . . . . . . . . .
6a
Additional section 263A costs (attach schedule) . . . . . . . . . . . . . . .
6b
Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . .
Total. Add lines 1 through 6b . . . . . . . . . . . . . . . . . . . . .
7
8
Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold. Subtract line 8 from line 7. Enter here and on line 2, page 1 . . . .
9
Check all methods used for valuing closing inventory:
(i)
Cost as described in Regulations section 1.471-3
(ii)
Lower of cost or market as described in Regulations section 1.471-4
(iii)
Other (Specify method used and attach explanation) ©
Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c) . . . .
Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) .
If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of
10d
closing inventory computed under LIFO . . . . . . . . . . . . . . . . . .
If property is produced or acquired for resale, do the rules of section 263A apply to the cooperative? . .
Was there any change in determining quantities, cost, or valuations between opening and closing inventory?
If “Yes,” attach explanation.

Schedule C
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4
5
6
7
8
9
10
11
12
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14
15
16
17
18
19
20

Cost of Goods Sold (see instructions)

Dividends and Special Deductions
(see instructions)

(a) Dividends
received

Dividends from less-than-20%-owned domestic corporations (other than
debt-financed stock) . . . . . . . . . . . . . . . . .
Dividends from 20%-or-more-owned domestic corporations (other than
debt-financed stock) . . . . . . . . . . . . . . . . .
Dividends on debt-financed stock of domestic and foreign
corporations . . . . . . . . . . . . . . . . . . . .
Dividends on certain preferred stock of less-than-20%-owned public
utilities . . . . . . . . . . . . . . . . . . . . . .
Dividends on certain preferred stock of 20%-or-more-owned public
utilities . . . . . . . . . . . . . . . . . . . . . .
Dividends from less-than-20%-owned foreign corporations and certain
FSCs . . . . . . . . . . . . . . . . . . . . . .
Dividends from 20%-or-more-owned foreign corporations and certain
FSCs . . . . . . . . . . . . . . . . . . . . . .

Foreign dividend gross-up . . . . . . . . . . . . . . .
IC-DISC and former DISC dividends not included on lines 1, 2, or 3
.
Other dividends . . . . . . . . . . . . . . . . . . .
Deduction for dividends paid on certain preferred stock of public utilities
Total dividends. Add lines 1 through 17. Enter here and on line 4,
page 1 . . . . . . . . . . . . . . . . . . . . . ©
Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on line 26c, page 1

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Yes
Yes

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No
No

(c) Deduction
((a) 3 (b))

(b) %

70
80
See
instructions

42
48
70
80
100

Dividends from wholly owned foreign subsidiaries . . . . . . .
Total. Add lines 1 through 8. See instructions for limitation . . . .
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 . . .
Dividends from affiliated group members . . . . . . . . . .
Dividends from certain FSCs . . . . . . . . . . . . . .
Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11,
or 12 . . . . . . . . . . . . . . . . . . . . . .
Income from controlled foreign corporations under subpart F (attach
Form(s) 5471) . . . . . . . . . . . . . . . . . . .

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100
100
See
instructions

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©
Form 1120-C (2009)

Page 3

Form 1120-C (2009)

Schedule E

Compensation of Officers (See instructions for line 11, page 1.)

Complete Schedule E only if total receipts (line 1a, plus lines 4 through 9, of page 1) are $500,000 or more.
(a) Name of officer

Percent of association’s
stock owned

(c) Percent of
time devoted to
business

(b) Social security number

1

(d) Common

(e) Preferred

%
%

%
%

%
%

%
%
%

%
%
%

%
%
%

2

Total compensation of officers .

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3

Compensation of officers claimed on Schedule A and elsewhere on return

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4

Subtract line 3 from line 2. Enter the result here and on line 11, page 1

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4

Schedule G

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Allocation of Patronage and Nonpatronage Income and Deductions. Before completing,
see Question 14 of Schedule K.
(a) Patronage

1
2
3
4
5
6a
b
c
7
8
9a
b
10
11

Net operating loss deduction (attach schedule) . . . . . . . . .
Special deductions (see instructions) . . . . . . . . . . . . .
Taxable income. Subtract the total of lines 8, 9a, and 9b from line 7 . .
Combined taxable income. Combine columns (a) and (b) of line 10 (see
instructions) . . . . . . . . . . . . . . . . . . . . .

12
13

Unused patronage loss (see instructions) . .
Unused nonpatronage loss (see instructions) .

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(b) Nonpatronage

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4
5
6a
6b
6c

Gross receipts or sales . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1 . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . . .
Total income. Combine lines 3 and 4 . . . . . . . . . . . .
Domestic production activities deduction (attach Form 8903) . . . . .
Other deductions . . . . . . . . . . . . . . . . . . .
Total deductions (add lines 6a and 6b) . . . . . . . . . . . .
Taxable income before section 1382, NOL, and special deductions. Subtract
line 6c from line 5 . . . . . . . . . . . . . . . . . . .
Deductions and adjustments under section 1382 from Schedule H, line 5
(see instructions) . . . . . . . . . . . . . . . . . . .

Schedule H

7
8
9a
9b
10
11
12
13

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Deductions and Adjustments Under Section 1382 (see instructions)

1

Dividends paid on capital stock (section 521 cooperatives only) .

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1

2
3

Nonpatronage income allocated to patrons (section 521 cooperatives only) .
Patronage dividends:
Money . . . . . . . . . . . . . . . . . . . . . . . .

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2

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3a

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3b

c Other property (except nonqualified written notices of allocation) . . . . . . . . . . .
d Money or other property (except written notices of allocation) in redemption of nonqualified written
notices of allocation . . . . . . . . . . . . . . . . . . . . . . . . . .

3c

a

(f) Amount of
compensation

b Qualified written notices of allocation .

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4

Domestic production activities deduction allocated to patrons

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5

Total. Combine lines 1 through 4. Enter here and on line 26a, page 1, and Schedule G, line 8 .

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3d
4 (

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Form 1120-C (2009)

Page 4

Form 1120-C (2009)

Schedule J

Tax Computation (see instructions)

1

Check if the cooperative is a member of a controlled group (attach Schedule O
(Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . . ©

2
3
4
5a
b
c
d
6
7
8

Income tax (see instructions) . . . . . . . . . . . .
Alternative minimum tax (attach Form 4626) . . . . . . .
Add lines 2 and 3 . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118)
. . . . . . . . .
Credit from Form 8834, line 29 . . . . . . . . . . . .
General business credit (attach Form 3800)
. . . . . . .
Credit for prior year minimum tax (attach Form 8827) . . . .
Total credits. Add lines 5a through 5d . . . . . . . . .
Subtract line 6 from line 4 . . . . . . . . . . . . .
Other taxes. Check if from:
Form 4255
Form 8611
Form 8902
Total tax. Add lines 7 and 8. Enter here and on line 28, page 1 .

9

Schedule K

Other Information (see instructions)

1

Check accounting method:
a
Cash
b
Accrual
c
Other (specify) ©
2
See the instructions and enter the:
a Business activity code no. ©
b Business activity ©
c Product or service ©
d Date of incorporation ©
Check the accounting method used to compute
3
distributable patronage:
a
b
c
4

5

6

7
8

Yes No

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5a
5b
5c
5d
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Other (attach schedule)

2
3
4

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9

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6
7
8

If “Yes,” enter: (a) Percentage owned ©
and (b) Owner’s country ©
c The cooperative may have to file Form 5472, Information
Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ©
9

Yes No

Check this box if the cooperative issued publicly offered
debt instruments with original issue discount . . . ©

If checked, the cooperative may have to file Form
8281, Information Return for Publicly Offered
Original Issue Discount Instruments.

Book
Tax
Other (specify) ©
At the end of the tax year, did the cooperative
own, directly or indirectly, 50% or more of the
voting stock of a domestic corporation? (For
rules of attribution, see section 267(c).) . . .
If “Yes,” attach a schedule showing: (a) name
and employer identification number (EIN), (b)
percentage owned, and (c) taxable income or
(loss) before NOL and special deductions of
such corporation for the tax year ending with or
within your tax year.
Is the cooperative a subsidiary in an affiliated
group or a parent-subsidiary controlled group?
If “Yes,” enter name and EIN of the parent
corporation ©

10

At the end of the tax year, did any individual,
partnership, corporation, estate, or trust own,
directly or indirectly, 50% or more of the
cooperative’s voting stock? (For rules of
attribution, see section 267(c).) . . . . .
If “Yes,” attach a schedule showing name and
identifying number. (Do not include any
information already entered in 5 above.) Enter
percentage owned ©
Enter the cooperative’s total assets (see
instructions) © $
At any time during the tax year, did one foreign
person own, directly or indirectly, at least 25%
of (a) the total voting power of all classes of
stock of the cooperative entitled to vote or (b)
the total value of all classes of stock of the
cooperative? . . . . . . . . . . . .

14

11a

Enter the amount of tax-exempt income received or
accrued during the tax year (for example, interest or
extraterritorial income) © $
Enter the number of foreign patrons at the end of
the tax year ©

b Enter the total amount of patronage distributions
described in (or deducted under) IRC 1382(b) paid
or allocated to foreign patrons ©
12
If the cooperative has an NOL for the tax year and is
electing to forego the carryback period, check here ©

13

15

If the cooperative is filing a consolidated return, the
statement required by Regulations section 1.1502-21(b)
(3) must be attached or the election will not be valid.
Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line 26b.)
Patronage © $
Nonpatronage © $
Are the cooperative’s total receipts (line 1a plus lines
4 through 9 on page 1) for the tax year and its total
assets at the end of the tax year less than $250,000?
If “Yes,” the cooperative is not required to complete
Schedules G, L, M-1, or M-2. Instead, enter the total
amount of cash distributions and the book value of
property distributions (other than cash) made during
the tax year. © $
Enter the amount of outstanding nonqualified
notices of allocation (attach schedule) ©

Form 1120-C (2009)

Page 5

Form 1120-C (2009)

Schedule L
1
2a
b
3
4
5
6
7
8a
b
9a
b
10
11a
b
12
13

Balance Sheets per Books
Assets

Cash . . . . . . . . . . . .
Trade notes and accounts receivable .
Less allowance for bad debts
. . .
Inventories . . . . . . . . . .
Other current assets (attach schedule) .
Investments (see instructions) . . .
Loans to shareholders . . . . . .
Mortgage and real estate loans . . .
Buildings and other depreciable assets
Less accumulated depreciation . . .
Depletable assets . . . . . . .
Less accumulated depletion . . . .
Land (net of amortization) . . . . .
Intangible assets (amortizable only) . .
Less accumulated amortization . . .
Other assets (attach schedule) . . .
Total assets . . . . . . . . .

Beginning of tax year
(a)

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End of tax year

(b)

(c)

(d)

(

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(

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(

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(

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(

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(

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(

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(

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Liabilities and Capital

14
15
16
17
18
19
20

Accounts payable . . . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach schedule) . . . .
Loans from shareholders . . . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach schedule) . . . . . .
Capital stock: a Preferred stock . . . . . .
b Common stock . . . . . .
21
Additional paid-in capital . . . . . . . . .
22
Patronage dividends allocated in noncash form . .
23
Per-unit retains allocated in noncash form . . .
24
Retained earnings—Appropriated (attach schedule)
25
Retained earnings—Unappropriated . . . . .
26
Adjustments to shareholders’ equity (attach schedule)
27
(
Less cost of treasury stock . . . . . . . .
(
)
Total liabilities and capital . . . . . . . .
28
Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return
Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions
1
2
3
4

Net income (loss) per books . . . .
Federal income tax per books . . .
Excess of capital losses over capital gains
Income subject to tax not recorded on
books this year (itemize):

7

Income recorded on books this year
not included in this tax return (itemize):
Tax-exempt interest $

8

Deductions in this tax return not charged
against book income this year (itemize):
a Depreciation . . . . $
b Charitable contributions $

Expenses recorded on books this year
not deducted in this return (itemize):
$
a Depreciation . . .
b Charitable contributions $
c Travel and entertainment $

5

6

Add lines 1 through 5

1
2
3

Balance at beginning of year
Net income (loss) per books .
Other increases (itemize):

Schedule M-2

4

9
10

Add lines 7 and 8 . . . . . . .
Income (line 25, page 1)—line 6 less line 9

5

a Cash . . . . .
b Stock . . . . .
c Property . . . .
Other decreases (itemize):
Add lines 5 and 6 . . . . . . .
Balance at end of year (line 4 less line 7)

)

Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)

Add lines 1, 2, and 3 .

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7
8

Distributions:

Form 1120-C (2009)