Form 1099-PATR: Taxable Distributions Received From Cooperatives
Report distributions of $10 or more from cooperatives.
Filing Deadline
January 31 (to patron) / February 28 (paper) or March 31 (e-file) to IRS
Threshold
$10 or more in distributions
Who Receives
Cooperative members (patrons) receiving distributions
Overview
Form 1099-PATR is used by cooperatives to report distributions of $10 or more to their patrons. This includes patronage dividends, per-unit retain allocations, qualified notices, and other distributions.
Cooperatives operate on a pass-through basis, distributing income based on members' patronage (business done with the cooperative). These distributions may include cash, property, or qualified written notices of allocation.
Who Must File
Required Filers
- •Agricultural, consumer, and other cooperatives (exempt and non-exempt)
- •Report patronage dividends of $10 or more
- •Report per-unit retain allocations
- •Report any qualified written notices of allocation or redemption
Exceptions & Notes
- ✕Distributions under $10 don't require reporting
- ✕Non-patronage distributions reported differently (may be Form 1099-DIV)
Form Structure & Instructions
Here's what information is required in each section:
Distribution Information
Types and amounts of cooperative distributions
Special Allocations
Written notices and other allocation types
Important Filing Notes
Patronage vs. Nonpatronage
Patronage dividends (Box 1) are based on business done with the cooperative. Nonpatronage distributions (Box 2) are from other sources like investments.
Qualified Written Notices
Cooperatives may issue qualified written notices of allocation instead of cash. These are taxable when issued but don't result in cash to the patron until later.
Section 199A Deduction
Box 6 and Box 7 amounts may qualify for the qualified business income deduction under Section 199A. Keep these amounts separate on your return.
Per-Unit Retains
Per-unit retain allocations (Box 3) are special allocations based on quantity of products marketed. Tax treatment depends on patron's accounting method.
Cooperative Distribution Reporting Simplified
Whether you're an agricultural co-op or consumer cooperative, we handle Form 1099-PATR filing so you can focus on serving your members.
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