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Department of the Treasury
Internal Revenue Service
2022

Instructions for Form

1099-PATR

Taxable Distributions Received From Cooperatives

Section references are to the Internal Revenue Code unless Statements to Recipients
otherwise noted. If you are required to file Form 1099-PATR, you must furnish a
statement to the recipient. For more information about the
Future Developments requirement to furnish statements to recipients, see part M in the
For the latest information about developments related to Form 2022 General Instructions for Certain Information Returns.
1099-PATR and its instructions, such as legislation enacted after
they were published, go to IRS.gov/Form1099PATR. Truncating recipient's TIN on payee statements. Pursuant
to Regulations section 301.6109-4, all filers of this form may
Reminders truncate a payee’s TIN (social security number (SSN), individual
In addition to these specific instructions, you should also use the taxpayer identification number (ITIN), adoption taxpayer
2022 General Instructions for Certain Information Returns. identification number (ATIN), or employer identification number
Those general instructions include information about the (EIN)) on payee statements. Truncation is not allowed on any
following topics. documents the filer files with the IRS. A filer’s TIN may not be
• Who must file. truncated on any form. See part J in the 2022 General
• When and where to file. Instructions for Certain Information Returns.
• Electronic reporting.
• Corrected and void returns. 2nd TIN Not.
• Statements to recipients. You may enter an “X” in this box if you were notified by the IRS
• Taxpayer identification numbers (TINs). twice within 3 calendar years that the payee provided an
• Backup withholding. incorrect TIN. If you mark this box, the IRS will not send you any
• Penalties. further notices about this account.
• Other general topics. However, if you received both IRS notices in the same year,
You can get the general instructions at IRS.gov/ or if you received them in different years but they both related to
1099GeneralInstructions. 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
Online fillable copies. To ease statement furnishing are considered to have received one notice and you are not
requirements, Copies B and C have been made fillable online in required to send a second “B” notice to the taxpayer on receipt
a PDF format available at IRS.gov/Form1099PATR. You can of the second notice. See part N in the 2022 General Instructions
complete these copies online for furnishing statements to for Certain Information Returns for more information.
recipients and for retaining in your own files. .
For information on the TIN Matching System offered by
Specific Instructions TIP the IRS, see Items You Should Note in the 2022 General
File Form 1099-PATR, Taxable Distributions Received From Instructions for Certain Information Returns.
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 Account Number
federal income tax under the backup withholding rules The account number is required if you have multiple accounts for
regardless of the amount of the payment. A cooperative a recipient for whom you are filing more than one Form
determined to be primarily engaged in the retail sale of goods or 1099-PATR. Additionally, the IRS encourages you to designate
services that are generally for personal, living, or family use of an account number for all Forms 1099-PATR that you file. See
the members may ask for and receive exemption from filing part L in the 2022 General Instructions for Certain Information
Form 1099-PATR. See Form 3491, Consumer Cooperative Returns.
Exemption Application, for information about how to apply for
this exemption. Report dividends paid on a cooperative's capital Box 1. Patronage Dividends
stock on Form 1099-DIV, Dividends and Distributions. Enter the patron’s share of total patronage dividends paid in
Report on Form 1099-PATR only items of income, cash (including qualified or “consent” checks), qualified written
notices of allocation (face amount), and other property (except
! expenses, and credits that you properly pass through to nonqualified written notices of allocation) allowable as a
CAUTION patrons for reporting on the patron's tax return.
deduction under section 1382(b)(1).
Exceptions. Generally, you are not required to file Form
1099-PATR for payments made to a corporation, a tax-exempt Box 2. Nonpatronage Distributions
organization including tax-exempt trusts (HSAs, Archer MSAs, For farmers’ cooperatives exempt from tax under section 521
and Coverdell ESAs), the United States, a state, a possession, only, enter the patron’s share of the total amount paid in cash
or the District of Columbia. See Regulations section 1.6044-3(c). (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

Sep 27, 2021 Cat. No. 27984F

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business done for the United States or any agency thereof or to provide this information whether or not you pass any of the
from nonpatronage sources allowable as a deduction under section 199A(g) deduction through to the patrons. See section
section 1382(c)(2)(A). 199A(b)(7).
Redemptions of nonqualified written notices of allocation that
were paid on a patronage basis with respect to the cooperative's Box 8. Section 199A(a) Qualified Items
earnings from nonpatronage sources allowable as a deduction Enter amounts reported to the patrons that are qualified items of
under section 1382(c)(2)(B) are also required to be included in income, gain, deduction, or loss from qualified trades or
box 2. Prior to tax year 2020, these amounts were reported in businesses that are not a specified service trade or business
box 5. (SSTB) for purposes of section 199A. Examples of income that
are not qualified items include tax-exempt income, capital gains,
Box 3. Per-Unit Retain Allocations and income that isn't effectively connected with the conduct of a
Enter the patron’s share of the total per-unit retain allocations trade or business within the United States. See the Instructions
paid in cash, qualified per-unit retain certificates (face amount), for Form 8995-A for more information on qualified items. Report
and other property (except nonqualified per-unit retain items relating to SSTBs separately in box 9.
certificates) allowable as a deduction under section 1382(b)(3).
Box 9. Section 199A(a) SSTB Items
Box 4. Federal Income Tax Withheld Enter amounts reported to the patrons that are qualified items
Enter backup withholding on patronage payments. Persons who from otherwise qualified trades or businesses that are an SSTB
have not furnished their TIN to you in the manner required are for purposes of section 199A. Examples of SSTBs include the
subject to withholding on payments required to be reported in provision of services in the fields of health, law, accounting, etc.
boxes 1, 2, 3, and 5 to the extent such payments are in cash or See the Instructions for Form 8995-A for more information on
qualified check. See Regulations section 31.3406(b)(2)-5 for SSTBs and income that does not qualify as qualified items.
more information on backup withholding by cooperatives.
Box 10. Investment Credit
For more information on backup withholding, including the
applicable rate, see part N in the 2022 General Instructions for Enter the patron’s share of total investment credit.
Certain Information Returns.
Box 11. Work Opportunity Credit
Box 5. Redeemed Nonqualified Notices Enter the patron’s share of total work opportunity credit.
Enter the amount of redeemed nonqualified written notices of
allocation that were paid as a patronage dividend and the Box 12. Other Credits and Deductions
amount of redeemed nonqualified per-unit retain certificates that For the patron, state separately in box 12 the type and amount of
were paid as a per-unit retain allocation. See sections 1382(b)(2) each of the following credits and deductions.
and (4). • The empowerment zone credit (Form 8844).
• The low sulfur diesel fuel production credit (Form 8896).
Box 6. Section 199A(g) Deduction • The credit for small employer health insurance premiums
For specified agricultural and horticultural cooperatives only, (Form 8941).
enter the patron's share of the amount of section 199A(g) • The credit for employer differential wage payments (Form
deduction claimed by the cooperative under section 199A(g) 8932).
and passed through to the patron. This amount must have been • The deduction for capital costs incurred by small refiner
designated in a written notice sent to the patron from the cooperatives when complying with EPA sulfur regulations.
cooperative within the payment period under section 1382(d). • The biodiesel and renewable diesel fuels 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.

Box 7. Qualified Payments
For specified agricultural and horticultural cooperatives only,
enter the qualified payments paid to the patron. You are required

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