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Department of the Treasury
Internal Revenue Service
Instructions for Form

1099-PATR

(Rev. January 2023)
Taxable Distributions Received From Cooperatives

Section references are to the Internal Revenue Code unless Exceptions. Generally, you are not required to file Form
otherwise noted. 1099-PATR for payments made to a corporation, a tax-exempt
organization including tax-exempt trusts (HSAs, Archer MSAs,
Future Developments and Coverdell ESAs), the United States, a state, a possession,
For the latest information about developments related to Form or the District of Columbia. See Regulations section 1.6044-3(c).
1099-PATR and its instructions, such as legislation enacted after
they were published, go to IRS.gov/Form1099PATR. Statements to Recipients
If you are required to file Form 1099-PATR, you must furnish a
What’s New statement to the recipient. For more information about the
Continuous-use form and instructions. Form 1099-PATR requirement to furnish statements to recipients, see part M in the
and these instructions have been converted from an annual current General Instructions for Certain Information Returns.
revision to continuous use. Both the form and instructions will be Truncating recipient's TIN on payee statements. Pursuant
updated as needed. For the most recent versions, go to IRS.gov/ to Regulations section 301.6109-4, all filers of this form may
Form1099PATR. truncate a payee’s TIN (social security number (SSN), individual
taxpayer identification number (ITIN), adoption taxpayer
Reminders identification number (ATIN), or employer identification number
In addition to these specific instructions, you should also use the (EIN)) on payee statements. Truncation is not allowed on any
current General Instructions for Certain Information Returns. documents the filer files with the IRS. A filer’s TIN may not be
Those general instructions include information about the truncated on any form. See part J in the current General
following topics. Instructions for Certain Information Returns.
• Who must file.
• When and where to file. 2nd TIN Not.
• Electronic reporting. You may enter an “X” in this box if you were notified by the IRS
• Corrected and void returns. twice within 3 calendar years that the payee provided an
• Statements to recipients. incorrect TIN. If you mark this box, the IRS will not send you any
• Taxpayer identification numbers (TINs). further notices about this account.
• Backup withholding.
• Penalties. However, if you received both IRS notices in the same year,
• Other general topics. or if you received them in different years but they both related to
You can get the general instructions at IRS.gov/ information returns filed for the same year, do not check the box
1099GeneralInstructions. 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
Online fillable copies. To ease statement furnishing required to send a second “B” notice to the taxpayer on receipt
requirements, Copies B and C have been made fillable online in of the second notice. See part N in the current General
a PDF format available at IRS.gov/Form1099PATR. You can Instructions for Certain Information Returns for more information.
complete these copies online for furnishing statements to
recipients and for retaining in your own files. 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.
Specific Instructions
File Form 1099-PATR, Taxable Distributions Received From Account Number
Cooperatives, for each person to whom the cooperative has paid The account number is required if you have multiple accounts for
at least $10 in patronage dividends and other distributions a recipient for whom you are filing more than one Form
described in section 6044(b), or from whom you withheld any 1099-PATR. Additionally, the IRS encourages you to designate
federal income tax under the backup withholding rules an account number for all Forms 1099-PATR that you file. See
regardless of the amount of the payment. A cooperative part L in the current General Instructions for Certain Information
determined to be primarily engaged in the retail sale of goods or Returns.
services that are generally for personal, living, or family use of
the members may ask for and receive exemption from filing Box 1. Patronage Dividends
Form 1099-PATR. See Form 3491, Consumer Cooperative
Exemption Application, for information about how to apply for Enter the patron’s share of total patronage dividends paid in
this exemption. Report dividends paid on a cooperative's capital cash (including qualified or “consent” checks), qualified written
stock on Form 1099-DIV, Dividends and Distributions. notices of allocation (face amount), and other property (except
nonqualified written notices of allocation) allowable as a
Report on Form 1099-PATR only items of income, deduction under section 1382(b)(1).
! expenses, and credits that you properly pass through to
CAUTION patrons for reporting on the patron's tax return. 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

Nov 8, 2022 Cat. No. 27984F

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(including qualified or “consent” checks), qualified written Box 7. Qualified Payments
notices of allocation (face amount), and other property (except For specified agricultural and horticultural cooperatives only,
nonqualified written notices of allocation) on a patronage basis enter the qualified payments paid to the patron. You are required
with respect to the cooperative’s earnings that are derived from to provide this information whether or not you pass any of the
business done for the United States or any agency thereof or section 199A(g) deduction through to the patrons. See section
from nonpatronage sources allowable as a deduction under 199A(b)(7).
section 1382(c)(2)(A).
Redemptions of nonqualified written notices of allocation that Box 8. Section 199A(a) Qualified Items
were paid on a patronage basis with respect to the cooperative's Enter amounts reported to the patrons that are qualified items of
earnings from nonpatronage sources allowable as a deduction income, gain, deduction, or loss from qualified trades or
under section 1382(c)(2)(B) are also required to be included in businesses that are not a specified service trade or business
box 2. Prior to tax year 2020, these amounts were reported in (SSTB) for purposes of section 199A. Examples of income that
box 5. are not qualified items include tax-exempt income, capital gains,
and income that isn't effectively connected with the conduct of a
Box 3. Per-Unit Retain Allocations trade or business within the United States. See the Instructions
Enter the patron’s share of the total per-unit retain allocations for Form 8995-A for more information on qualified items. Report
paid in cash, qualified per-unit retain certificates (face amount), items relating to SSTBs separately in box 9.
and other property (except nonqualified per-unit retain
certificates) allowable as a deduction under section 1382(b)(3). Box 9. Section 199A(a) SSTB Items
Enter amounts reported to the patrons that are qualified items
Box 4. Federal Income Tax Withheld from otherwise qualified trades or businesses that are an SSTB
Enter backup withholding on patronage payments. Persons who for purposes of section 199A. Examples of SSTBs include the
have not furnished their TIN to you in the manner required are provision of services in the fields of health, law, accounting, etc.
subject to withholding on payments required to be reported in See the Instructions for Form 8995-A for more information on
boxes 1, 2, 3, and 5 to the extent such payments are in cash or SSTBs and income that does not qualify as qualified items.
qualified check. See Regulations section 31.3406(b)(2)-5 for
more information on backup withholding by cooperatives. Box 10. Investment Credit
For more information on backup withholding, including the Enter the patron’s share of total investment credit.
applicable rate, see part N in the current General Instructions for
Certain Information Returns. Box 11. Work Opportunity Credit
Enter the patron’s share of total work opportunity credit.
Box 5. Redeemed Nonqualified Notices
Enter the amount of redeemed nonqualified written notices of Box 12. Other Credits and Deductions
allocation that were paid as a patronage dividend and the For the patron, state separately in box 12 the type and amount of
amount of redeemed nonqualified per-unit retain certificates that each of the following credits and deductions.
were paid as a per-unit retain allocation. See sections 1382(b)(2) • The empowerment zone employment credit (Form 8844).
and (4). • The low sulfur diesel fuel production credit (Form 8896).
• The credit for small employer health insurance premiums
Box 6. Section 199A(g) Deduction (Form 8941).
For specified agricultural and horticultural cooperatives only, • The credit for employer differential wage payments (Form
enter the patron's share of the amount of section 199A(g) 8932).
deduction claimed by the cooperative under section 199A(g) • The deduction for capital costs incurred by small refiner
and passed through to the patron. This amount must have been cooperatives when complying with EPA sulfur regulations.
designated in a written notice sent to the patron from the • The biodiesel, renewable diesel, or sustainable aviation fuel
cooperative within the payment period under section 1382(d). mixture credit (Form 8864).
The deduction allocated to each patron cannot exceed 9% of the
qualified payments reported in box 7. Only eligible taxpayers, Box 13. Specified Cooperatives
which does not include a C corporation that is not itself a Check this box if you are reporting information as a specified
specified agricultural or horticultural cooperative, may claim a agricultural or horticultural cooperative, defined in section
section 199A(g) deduction that is passed through. Do not reduce 199A(g)(4)(A) as a cooperative to which part 1 of subchapter T
the amounts reported in box 1 or box 3 by the amount reported of chapter 1 of subtitle A of the Code applies which is engaged
in box 6. (1) in the manufacturing, production, growth, or extraction in
whole or significant part of any agricultural or horticultural
Note. The cooperative must reduce its section 1382 deduction product; or (2) in the marketing of agricultural or horticultural
by the amount of the section 199A(g) deduction passed through products.
to its patrons.

-2- Instructions for Form 1099-PATR (Rev. 01-2023)

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