Taxable Distributions Received From Cooperatives

Instructions for Form
1099-PATR
(Rev. April 2025)

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.
You can get the General Instructions for Certain Information
Returns at IRS.gov/1099GeneralInstructions.

Reminders

In addition to these specific instructions, you should also use the
current 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.
Online fillable copy. To ease statement furnishing
requirements, Copy B has been made fillable online in a PDF
format available at IRS.gov/Form1099PATR. You may fill out
Copy B online and send it to the recipient.
Continuous use revision. Use these instructions for tax year
2025 and subsequent years until a superseding revision is
issued.

Specific Instructions

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.

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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
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).

Mar 19, 2025

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
current 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 current 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 current 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 current

General Instructions for Certain Information Returns.

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 current 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 section 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
(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

Instructions for Form 1099PATR (Rev. 4-2025) Catalog Number 27984F
Department of the Treasury Internal Revenue Service www.irs.gov

from nonpatronage sources allowable as a deduction under
section 1382(c)(2)(A).
Redemptions of nonqualified written notices of allocation that
were paid on a patronage basis with respect to the cooperative's
earnings from nonpatronage sources allowable as a deduction
under section 1382(c)(2)(B) are also required to be included in
box 2.

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 section 1382(b)(3).

Box 4. Federal Income Tax Withheld

to provide this information whether or not you pass any of the
section 199A(g) deduction through to the patrons. See section
199A(b)(7).

Box 8. Section 199A(a) Qualified Items

Enter amounts reported to the patrons that are qualified items of
income, gain, deduction, or loss from qualified trades or
businesses that are not a specified service trade or business
(SSTB) for purposes of section 199A. Examples of income that
are not qualified items include tax-exempt income, capital gains,
and income that isn't effectively connected with the conduct of a
trade or business within the United States. See the Instructions
for Form 8995-A, Qualified Business Income Deduction, for more
information on qualified items. Report items relating to SSTBs
separately in box 9.

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 current General Instructions for
Certain Information Returns.

Enter amounts reported to the patrons that are qualified items
from otherwise qualified trades or businesses that are an SSTB
for purposes of section 199A. Examples of SSTBs include the
provision of services in the fields of health, law, accounting, etc.
See the Instructions for Form 8995-A for more information on
SSTBs and income that does not qualify as qualified items.

Box 5. Redeemed Nonqualified Notices

Enter the patron’s share of total investment credit.

Enter the amount of redeemed nonqualified written notices of
allocation that were paid as a patronage dividend and the
amount of redeemed nonqualified per-unit retain certificates that
were paid as a per-unit retain allocation. See sections 1382(b)(2)
and (4).

Box 6. Section 199A(g) Deduction

For specified agricultural and horticultural cooperatives only,
enter the patron's share of the amount of section 199A(g)
deduction claimed by the cooperative under section 199A(g) and
passed through to the patron. This amount must have been
designated in a written notice sent to the patron from the
cooperative within the payment period under section 1382(d).
The deduction allocated to each patron cannot exceed 9% of the
qualified payments reported in box 7. Only eligible taxpayers,
which does not include a C corporation that is not itself a
specified agricultural or horticultural cooperative, may claim a
section 199A(g) deduction that is passed through. Do not reduce
the amounts reported in box 1 or box 3 by the amount reported in
box 6.
Note. The cooperative must reduce its section 1382 deduction
by the amount of the section 199A(g) deduction passed through
to its patrons.

Box 7. Qualified Payments

For specified agricultural and horticultural cooperatives only,
enter the qualified payments paid to the patron. You are required

2

Box 9. Section 199A(a) SSTB Items

Box 10. Investment Credit

Box 11. Work Opportunity Credit

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

Box 12. Other Credits and Deductions

For the patron, state separately in box 12 the type and amount of
each of the following credits and deductions.
• The empowerment zone employment 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.
• The small agri-biodiesel producer credit of an eligible small
agri-biodiesel producer (Form 8864).

Box 13. Specified Cooperatives

Check this box if you are reporting information as a specified
agricultural or horticultural cooperative, defined in section
199A(g)(4)(A) as a cooperative to which part I of subchapter T of
chapter 1 of subtitle A of the Code applies, which is engaged (1)
in the manufacturing, production, growth, or extraction in whole
or significant part of any agricultural or horticultural product; or
(2) in the marketing of agricultural or horticultural products.

Instructions for Form 1099-PATR (Rev. 4-2025)