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

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1120-C

Department of the Treasury
Internal Revenue Service

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

Tax, Refundable Credits, and Payments

Deductions (See instructions for limitations on deductions.)

Income

D

U.S. Income Tax Return for Cooperative Associations

For calendar year 2018 or tax year beginning
▶

Please type or print

Form

, 2018, ending

2018

, 20

Go to www.irs.gov/Form1120C for instructions and the latest information.

Name

B Employer identification number

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

C
(1)

Check if:
Farmers’ tax exempt
cooperative . . .

(2)

Nonexempt
cooperative .

City or town, state or province, country, and ZIP or foreign postal code

DRAFT AS OF
August 22, 2018
DO NOT FILE

Check if:

1a
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25a
b
26

(1)

Initial return

(2)

Final return

(3)

Name change (4)

Address change (5)

Gross receipts or sales
b Less returns and allowances
c Bal ▶
Cost of goods sold (see instructions—attach Form 1125-A) . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . .
Dividends and inclusions (Schedule C, line 23) . . . . . . . . . . . . . . . .
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 statement) . . . . . . . . . . . . . . .
Total income. Add lines 3 through 9
. . . . . . . . . . . . . . . . . . ▶
Compensation of officers (attach Form 1125-E) . . . . . . . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . .
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . .
Employee benefit programs
. . . . . . . . . . . . . . . . . . . . . .
Domestic production activities deduction (see instructions) . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 11 through 23 . . . . . . . . . . . . . . . . ▶
Taxable income before adjustments and special deductions. Subtract line 24 from line 10 25a
Less: deductions and adjustments from Schedule H, line 5 . . . 25b
Less: a Net operating loss deduction (see instructions) . . . . 26a
b Special deductions (Schedule C, line 24) . . . . . . 26b
27
Taxable income. Subtract line 26c from line 25c. See instructions . . . . . . . . . .
28
Total tax (Schedule J, line 9) . . . . . . . . . . . . . . . . . . . . . .
29
2018 Net 965 Tax Liability Paid from Form 965-B, Part II, column (k), line 2 . . . . . . .
30a 2017 overpayment credited to 2018 30a
b 2018 estimated tax payments .
30b
) d Bal ▶ 30d
c 2018 refund applied for on Form 4466 30c (
e Tax deposited with Form 7004
. . . . . . . . . . . . 30e
30f
(2) Form 4136
f Credits: (1) Form 2439
g Refundable credits from Form 8827, line 8c . . . . . . . . 30g
h Section 1383 adjustment (see instructions)
. . . . . . . . 30h
i 2018 Net 965 Tax Liability from Form 965-B, Part I, column (d), line 2 30i
31
Estimated tax penalty. See instructions. Check if Form 2220 is attached . . . . . . ▶
32
Amount owed. If line 30j is smaller than the total of lines 28, 29, and 31, enter amount owed .
33
Overpayment. If line 30j is larger than the total of lines 28, 29, and 31, enter amount overpaid .
34
Enter amount of line 33 you want: Credited to 2019 estimated tax ▶
Refunded ▶

.

.

Amended return

1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

25c
26c
27
28
29

30j
31
32
33
34

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
Use Only

Date

Print/Type preparer’s name

Firm’s name

Preparer’s signature

▲

▲

Sign
Here

OMB No. 1545-0123

May the IRS discuss this return
with the preparer shown below?
See instructions.
Yes No

Title
Date

PTIN

Firm’s EIN ▶

▶

Firm’s address ▶

For Paperwork Reduction Act Notice, see separate instructions.

Check
if
self-employed
Phone no.

Cat. No. 47554F

Form 1120-C (2018)

Page 2

Form 1120-C (2018)

Schedule C
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Dividends, Inclusions, and Special Deductions
(see instructions)

(a) Dividends
and inclusions

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 certain 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 . . . . . . . . . . . . . . . . . . . . . .
Dividends from wholly owned foreign subsidiaries

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Subtotal. Add lines 1 through 8. See instructions for limitations . . .
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 . . . . . . . . . . . . . .
Foreign-source portion of dividends received from a specified 10%owned foreign corporation (excluding hybrid dividends) (see instructions)
Dividends from foreign corporations not included on line 3, 6, 7, 8, 11,
12, or 13 (including any hybrid dividends) . . . . . . . . . .

15

Section 965(a) inclusion .

Subpart F inclusions derived from the sale by controlled foreign
corporation (CFC) of the stock a lower-tier foreign corporation treated as
a dividend (attach Form(s) 5471) (see instructions) . . . . . . .
Subpart F inclusions derived from hybrid dividends of tiered corporations
(attach Form(s) 5471) (see instructions) . . . . . . . . . . .
Other inclusions from CFCs under subpart F not included on line 15, 16a,
16b, or 17 (attach Form(s) 5471) (see instructions). . . . . . . .
Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and
Form 8992) . . . . . . . . . . . . . . . . . . . .

c
17
18
19
20
21
22
23
24

50
65

DRAFT AS OF
August 22, 2018
DO NOT FILE

16a

b

(b) %

(c) Special deductions
((a) × (b))

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See
instructions

23.3
26.7

50

65
100

See
instructions

100
100

See
instructions

100

See
instructions

100

Gross-up for foreign taxes deemed paid (see instructions) . . . . .
IC-DISC and former DISC dividends not included on line 1, 2, or 3 . .
Other dividends . . . . . . . . . . . . . . . . . . .
Deduction for dividends paid on certain preferred stock of public utilities
Section 250 deduction (attach Form 8993) . . . . . . . . . .
Total dividends and inclusions. Add lines 9 through 20. Enter here and
on page 1, line 4. . . . . . . . . . . . . . . . . . ▶
Total special deductions. Add lines 9 through 13, 15, 16, 21, and 22, column (c). Enter here and on page
▶
1, line 26b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form 1120-C (2018)

Page 3

Form 1120-C (2018)

Schedule G

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

1
2
3
4
5
6a
b
c
7
8

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 (see instructions) . . . . . .
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) . . . . . . . . . . . . . . . . . . . . . .

DRAFT AS OF
August 22, 2018
DO NOT FILE

9a
b
10
11

Net operating loss deduction (attach statement) . . . . . . . . . .
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) .

Schedule H

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7

8
9a
9b
10
11
12
13

Deductions and Adjustments Under Section 1382 (see instructions)

1
2
3

Dividends paid on capital stock (section 521 cooperatives only) . . . . . . . . . . . .
Nonpatronage income allocated to patrons (section 521 cooperatives only) . . . . . . . .
Patronage dividends:
a Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Qualified written notices of allocation . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . .

4
5

Domestic production activities deduction allocated to patrons (see instructions) . . . . . .
Total. Combine lines 1 through 4. Enter here and on page 1, line 25b, and Schedule G, line 8 .

Schedule J
1
2
3
4
5a
b
c
d
e
6
7
8
9

(b) Nonpatronage

1
2
3
4
5
6a
6b
6c

.
.

1
2
3a
3b
3c
3d
4 (
5

)

Tax Computation (see instructions)

Check if the cooperative is a member of a controlled group (attach Schedule O (Form 1120)). See instructions ▶
Income tax (see instructions) . . . . . . . . . . . . . . . . . . . . . . .
Base erosion minimum tax (attach Form 8991)
. . . . . . . . . . . . . . . . .
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . .
5a
Foreign tax credit (attach Form 1118)
. . . . . . . . . . .
Credit from Form 8834 (see instructions) . . . . . . . . . .
5b
5c
General business credit (attach Form 3800)
. . . . . . . . .
Credit for prior year minimum tax (attach Form 8827) . . . . . .
5d
5e
Bond credits from Form 8912 (attach Form 8912)
. . . . . . .
Total credits. Add lines 5a through 5e . . . . . . . . . . . . . . . . . . . .
Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
Other taxes. Check if from:
Form 4255
Form 8611
Other (attach statement)
Form 8902
Total tax. Add lines 7 and 8. Enter here and on page 1, line 28 . . . . . . . . . . . .

2
3
4

6
7
8
9

Form 1120-C (2018)

Page 4

Form 1120-C (2018)

Schedule K

Other Information (see instructions)

1

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

5

6

7
8

Yes No

If checked, the cooperative may have to file Form
8281, Information Return for Publicly Offered
Original Issue Discount Instruments.
10

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 ▶

DRAFT AS OF
August 22, 2018
DO NOT FILE

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 statement 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 ▶
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 statement 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? . . . . . . . . . . . .
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 . . . . . . . . . ▶

11a

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. See instructions . . . . . . . ▶

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.

13

14

15
16

17

18

Enter the available NOL carryover from prior tax
years. Do not reduce it by any deduction on page 1,
line 26a.
Patronage ▶ $
Nonpatronage ▶ $
Are the cooperative’s total receipts (page 1, line 1a
plus lines 4 through 9) 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
Schedule 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 statement) ▶
Does the cooperative have gross receipts of at least
$500 million in any of the 3 preceding tax years? (See
section 59A(e)(2) and (3)) . . . . . . . . .
If “Yes,” complete and attach Form 8991.
Did the cooperative have an election under section
163(j) for any real property trade or business or any
farming business in effect during the tax year? (see
instructions) . . . . . . . . . . . .
Does the cooperative satisfy one of the following
conditions and the corporation does not own a
pass-through entity with current year, or prior year
carryover, excess business interest expense? (see
instructions) . . . . . . . . . . . .
a The cooperative’s aggregate average annual gross
receipts (determined under section 448(c)) for the 3
tax years preceding the current tax year do not
exceed $25 million, and the cooperative is not a tax
shelter; or
b The cooperative only has business interest expense
from (1) an electing real property trade or business,
(2) an electing farming business, or (3) certain utility
businesses under section 163(j)(7).
If “No,” complete and attach Form 8990.

Form 1120-C (2018)

Page 5

Form 1120-C (2018)

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 statement)
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 statement) . .
Total assets . . . . . . . . .

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Beginning of tax year
(a)

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(

End of tax year

(b)

)

(c)

(

(d)

)

DRAFT AS OF
August 22, 2018
DO NOT FILE
(

)

(

)

(

)

(

)

(

)

(

)

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 statement) . . .
Loans from shareholders . . . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . . . .
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 statement)
25
Retained earnings—Unappropriated . . . . .
26
Adjustments to shareholders’ equity (attach statement)
27
Less cost of treasury stock . . . . . . . .
(
)
28
Total liabilities and capital . . . . . . . .
Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return
Note: The cooperative may be required to file Schedule M-3. 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

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 $

Schedule M-2
1
2
3

4

9
10

Add lines 1 through 5

)

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

5

6

(

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

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

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

Add lines 1, 2, and 3 .

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5

6
7
8

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

Form 1120-C (2018)