Taxable Distributions Received From Cooperatives

2019

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
otherwise noted.

Future Developments

For the latest information about developments related to Form
1099-PATR and its instructions, such as legislation enacted after
they were published, go to IRS.gov/Form1099PATR.

What’s New

For specified agricultural and horticultural cooperatives only,
qualified payments paid to the patron will be reported in new
box 7, Qualified Payments.

Reminders

In addition to these specific instructions, you also should use the
2019 General Instructions for Certain Information Returns.
Those general instructions include information about the
following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• Other general topics.

You can get the general instructions at IRS.gov/
1099GeneralInstructions.
Online fillable copies. To ease statement furnishing
requirements, Copies B and C have been made fillable online in
a pdf format available at IRS.gov/Form1099PATR. You can
complete these copies online for furnishing statements to
recipients and for retaining in your own files.

Specific Instructions

CAUTION

Report on Form 1099-PATR only items of income,
expenses, and credits that you properly pass through to
patrons for reporting on the patron's tax return.

Exceptions. Generally, you are not required to file Form
1099-PATR for payments made to a corporation, a tax-exempt
Dec 10, 2018

Statements to Recipients

If you are required to file Form 1099-PATR, you must furnish a
statement to the recipient. For more information about the
requirement to furnish statements to recipients, see part M in the
2019 General Instructions for Certain Information Returns.
Truncating recipient's TIN on payee statements. Pursuant
to Regulations section 301.6109-4, all filers of this form may
truncate a payee’s TIN (social security number (SSN), individual
taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification number
(EIN)) on payee statements. Truncation is not allowed on any
documents the filer files with the IRS. A filer’s TIN may not be
truncated on any form. See part J in the 2019 General
Instructions for Certain Information Returns.

2nd TIN Not.

You may enter an “X” in this box if you were notified by the IRS
twice within 3 calendar years that the payee provided an
incorrect TIN. If you mark this box, the IRS will not send you any
further notices about this account.
However, if you received both IRS notices in the same year,
or if you received them in different years but they both related to
information returns filed for the same year, do not check the box
at this time. For purposes of the two-notices-in-3-years rule, you
are considered to have received one notice and you are not
required to send a second “B” notice to the taxpayer on receipt
of the second notice. See part N in the 2019 General Instructions
for Certain Information Returns for more information.
.
For information on the TIN Matching system offered by

TIP the IRS, see Items You Should Note in the 2019 General
Instructions for Certain Information Returns.

File Form 1099-PATR, Taxable Distributions Received From
Cooperatives, for each person to whom the cooperative has paid
at least $10 in patronage dividends and other distributions
described in section 6044(b), or from whom you withheld any
federal income tax under the backup withholding rules
regardless of the amount of the payment. A cooperative
determined to be primarily engaged in the retail sale of goods or
services that are generally for personal, living, or family use of
the members may ask for and receive exemption from filing
Form 1099-PATR. See Form 3491, Consumer Cooperative
Exemption Application, for information about how to apply for
this exemption. Report dividends paid on a cooperative's capital
stock on Form 1099-DIV, Dividends and Distributions.

!

organization including tax-exempt trusts (HSAs, Archer MSAs,
and Coverdell ESAs), the United States, a state, a possession,
or the District of Columbia. See Regulations section 1.6044-3(c).

Account Number

The account number is required if you have multiple accounts for
a recipient for whom you are filing more than one Form
1099-PATR. Additionally, the IRS encourages you to designate
an account number for all Forms 1099-PATR that you file. See
part L in the 2019 General Instructions for Certain Information
Returns.

Box 1. Patronage Dividends

Enter the patron’s share of total patronage dividends paid in
cash (including qualified or “consent” checks), qualified written
notices of allocation (face amount), and other property (except
nonqualified written notices of allocation) allowable as a
deduction under IRC §1382(b)(1).

Box 2. Nonpatronage Distributions

For farmers’ cooperatives exempt from tax under section 521
only, enter the patron’s share of the total amount paid in cash

Cat. No. 27984F

Box 6. Domestic Production
Activities Deduction

(including qualified or “consent” checks), qualified written
notices of allocation (face amount), and other property (except
nonqualified written notices of allocation) on a patronage basis
with respect to the cooperative’s earnings that are derived from
business done for the United States or any agency thereof or
from nonpatronage sources allowable as a deduction under IRC
§1382(c).

For specified agricultural and horticultural cooperatives only,
enter the patron's share of the amount of domestic production
activities deduction (DPAD) claimed by the cooperative under
IRC §199(a) or IRC §199A(g) and passed through to the patron.
No deduction is allowed under section 199A for such qualified
payments. Do not reduce the amounts reported in box 1 or 3.

Box 3. Per-Unit Retain Allocations

Enter the patron’s share of the total per-unit retain allocations
paid in cash, qualified per-unit retain certificates (face amount),
and other property (except nonqualified per-unit retain
certificates) allowable as a deduction under IRC §1382(b)(3).

Box 7. Qualified Payments

For specified agricultural and horticultural cooperatives only,
enter the qualified payments paid to the patron. You are required
to provide this information whether or not you pass any of the
DPAD through to the patrons.

Box 4. Federal Income Tax Withheld

Enter backup withholding on patronage payments. Persons who
have not furnished their TIN to you in the manner required are
subject to withholding on payments required to be reported in
boxes 1, 2, 3, and 5 to the extent such payments are in cash or
qualified check. See Regulations section 31.3406(b)(2)-5 for
more information on backup withholding by cooperatives.
For more information on backup withholding, including the
applicable rate, see part N in the 2019 General Instructions for
Certain Information Returns.

Box 8. Investment Credit

Enter the patron’s share of total investment credit.

Box 9. Work Opportunity Credit

Enter the patron’s share of total work opportunity credit.

Box 10. Patron's AMT Adjustment

Enter the patron’s share of total alternative minimum tax (AMT)
patronage dividend adjustment.

Box 5. Redemption of Nonqualified
Notices and Retain Allocations

Box 11. Other Credits and Deductions

For the patron, state separately in box 11 the type and amount of
each of the following credits and deductions.
• The credit for renewable energy and refined fuel (Form 8835).
• The empowerment zone credit (Form 8844).
• The low sulfur diesel fuel production credit (Form 8896).
• The credit for small employer health insurance premiums
(Form 8941).
• The credit for employer differential wage payments (Form
8932).
• The deduction for capital costs incurred by small refiner
cooperatives when complying with EPA sulfur regulations.

Enter the amount of redemptions of nonqualified written notices
of allocation that were paid as a patronage dividend and the
amount of redemptions of nonqualified per-unit retain certificates
that were paid as a per-unit retain allocation. See IRC §§1382(b)
(2) & (4).
In addition, for farmers’ cooperatives exempt from tax under
section 521 only, enter the amount of redemptions of
nonqualified written notices of allocation that were paid on a
patronage basis with respect to the cooperative’s earnings that
are derived from business done for the United States or any
agency thereof or from nonpatronage sources. See IRC
§1382(c)(2)(B).

Pass-Through Credits and Deductions

Report in the appropriate boxes the patron's share of credits and
deductions that the cooperative is passing through to the patron.

-2-

Instructions for Form 1099-PATR (2019)