- January 23, 2023
What is Form 1099-PATR?
The IRS tax Form 1099-PATR reports taxable distributions from cooperatives. The taxable distributions received from cooperatives are entered in this tax Form for each person to whom the cooperative has paid at least $10 in patronage, dividends, and other distributions, described in section 6044 (b).
Who uses tax Form 1099-PATR?
Cooperatives use this tax Form to report the amount they have paid each person as patronage dividends. Taxpayers should file Form 1099-PATR for each person from whom they have withheld payments without refund. There are no minimum requirements for filing this tax Form. No matter how less the payment is, the taxpayer should report the payment in the tax Form 1099-PATR.
A cooperative primarily engaged in the retail sale of goods and services meant for personal use and use by family members may receive exemptions from filing Form 1099-PATR. Only items of income, credits, and expenses that one properly passes through to patrons for reporting on the patron’s tax return are to be filed in this tax Form. Taxpayers are not required to file Form 1099-PATR for payments made to corporations, tax-exempt organizations, and tax-exempt trusts such as HSAs, ESAs, MSAs, etc.
How to File Tax Form 1099-PATR Online?
IRS Tax Form 1099 PATR is used to report taxable distributions that are received from cooperatives for each recipient for whom the cooperative has paid at least $10 in patronage, dividends, and other distributions, from whom they have withheld federal income tax under the backup withholding rules, irrespective of the payment amount.
An account number is required for recipients with multiple accounts and for recipients filing more than one Form 1099-PATR. The IRS encourages taxpayers to designate an account number for all PATR Forms that one file. Form 1099-PATR has about 13 boxes. The first two boxes report payer information, the next four report recipient information, and the rest are used to report debt information.
Box 1: Reports patronage dividends
Box 2: Reports Non-patronage distributions
Box 3: This box reports information about per-unit retain allocations
Box 4: This box in the tax Form reports federal income tax withheld
Box 5: This section reports redeemed non-qualified notices
Box 6: This section of the tax Form includes Section 199A Qualified items
Box 7: Taxpayers can report qualified payments in this section
Box 8: Reports qualified items under section 199A
Box 9: Reports SSTB items under section 199A
Box 10: This section of the tax Form reports investment credits
Box 11: Reports work opportunity credits
Box 12: Taxpayers can report other credits and deductions in this tax Form
Box 13: Taxpayers will check this box if they are reporting information as an agricultural or horticultural cooperative.
Deadline/Due date to file Form 1099- PATR
The due date to e-file IRS Tax Form 1099-PATR is March 31st, 2023. The due date for this tax form’s paper filing is February 28th, 2023. The last date to send the recipient copy of this tax Form is January 31st, 2023.
This tax form 1099- the taxpayers use PATR to report taxable distributions received from cooperatives for whom the cooperatives have paid at least $10 in patronage dividends and other distributions described under section 6044 (b). It is possible to e-file this tax Form with the IRS through Tax2efile. With Tax2efile, it is possible to schedule the date when the tax Forms are transmitted to the IRS. Scheduling the Form saves time and avoids penalties with last-minute payments.
