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 ordinary income, unless nontaxable, on your income tax return. You must report
any redemptions in boxes 2 and 5 as ordinary income to the extent of the stated
dollar value because they were not taxable when issued to you. Amounts shown in
boxes 7, 8, and 9 are information needed to compute your section 199A(a)
deduction. See the Instructions for Form 8995 or 8995-A for more information.
Recipient’s taxpayer identification number (TIN). For your protection, this
form may show only the last four digits of your TIN. 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, and amounts you
received in redemption of nonqualified written notices of allocation from
nonpatronage sources.
Box 3. Shows patronage 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 TIN. See Form W-9 and Pub. 505 for more information.
Report 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 from patronage sources.
Box 6. Shows your share of the cooperative’s section 199A(g) deduction passed
through to you. The amount must have been designated in a written notice sent
to you from the cooperative during the section 1382(d) payment period. To claim
the deduction, you must not be a C corporation.
Box 7. Shows the amount of qualified payments paid to you on which the
cooperative computed its section 199A(g) deduction. If there is an amount in
this box and the amount is related to a trade or business for which you are
claiming a section 199A(a) deduction, you are required to compute a reduction
to your deduction per section 199A(b)(7).
Box 8. Shows items received and reported in boxes 1, 2, 3, and 5 that may
qualify as qualified items from trades or businesses that are not a specified
service trade or business (SSTB) for purposes of the section 199A(a) deduction.
Items relating to SSTBs are reported separately in box 9.
Box 9. Shows amounts received and reported in boxes 1, 2, 3, and 5 from an
SSTB that may qualify as qualified items for purposes of the section 199A(a)
deduction. Use Form 8995 or 8995-A to determine your section 199A(a) deduction.
Box 10. Shows investment credits passed through to you by the cooperative.
Use Form 3468 to compute your allowable credit.
Box 11. Shows work opportunity credits passed through to you. Use Form 5884
or 3800 to compute your allowable credit.
Box 12. Shows other credits and deductions passed through to you. For information
on how to report credits, see the instructions for the specific credit form.
Box 13. If this box is checked, the information in boxes 8 and 9 relates to more
than one trade or business. You should have received from the issuing
cooperative a statement with the amounts provided on this form in boxes 8 and
9 reported separately for each trade or business.
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.
