Instructions for Recipient
Distributions you received from a cooperative may be includible in your income.
Generally, if you are an individual, report any amounts shown in boxes 1, 2, 3,
and 5 as income, unless nontaxable, on Schedule F (Form 1040), Schedule C
(Form 1040), or Form 4835. See the Instructions for Schedule F (Form 1040) and
Pub. 225 for more information.
Recipient's taxpayer identification number (TIN). For your protection, this
form may show only the last four digits of your TIN (social security number
(SSN), individual taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification number (EIN)). However,
the issuer has reported your complete TIN to the IRS.
Account number. May show an account or other unique number the payer
assigned to distinguish your account.
Box 1. Shows patronage dividends paid to you during the year in cash, qualified
written notices of allocation (at stated dollar value), or other property (not including
nonqualified allocations). Any dividends paid on (1) property bought for personal
use or (2) capital assets or depreciable property used in your business are not
taxable. However, if (2) applies, reduce the basis of the assets by this amount.
Box 2. Shows nonpatronage distributions paid to you during the year in cash,
qualified written notices of allocation, or other property (not including
nonqualified written notices of allocation).
Box 3. Shows per-unit retain allocations paid to you during the year in cash,
qualified per-unit retain certificates, or other property.
Box 4. Shows backup withholding. Generally, a payer must backup withhold if
you didn't furnish your taxpayer identification number to the payer. See Form
W-9 for information on backup withholding. Include this amount on your income
tax return as tax withheld.
Box 5. Shows amounts you received when you redeemed nonqualified written
notices of allocation and nonqualified per-unit retain allocations. Because these
were not taxable when issued to you, you must report the redemption as
ordinary income to the extent of the stated dollar value.
Box 6. Shows your share of the cooperative's domestic production activities
deduction. The amount must have been identified on this or another written
notice sent to you from the cooperative during the payment period described in
section 1382(d). To claim the deduction, you must not be a C corporation.
Box 7. Shows the amount of the qualified payments on which the cooperative
computed its 199A(g) deduction.
Box 8. Shows unused investment credits passed through to you by the
cooperative. Use Form 3468, and its instructions, to figure the amount of credit
to which you are entitled.
Box 9. Shows unused work opportunity credits passed through to you by the
cooperative. Use Form 5884 to figure the amount of credit to which you are
entitled. If your only source of the credit is the cooperative, use Form 3800
instead.
Box 10. Shows the alternative minimum tax (AMT) adjustment passed through
to you by the cooperative. Report this amount on Form 6251 on the appropriate
line in Part I.
Box 11. Shows other unused credits and deductions (including depreciation)
passed through to you by the cooperative. For information on how to report
credits, see the instructions for the specific credit form. For information on how
to report deductions, see the instructions for Schedules C and F (Form 1040)
and Pub. 946.
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 www.irs.gov/Form1099PATR.
