Form 1099-PATR: Taxable Distributions Received From Cooperatives

Updated on August 29, 2022 - 10:30 AM by Admin, TaxBandits

In this article, we have covered the following topics:

1. What is Form 1099-PATR?

Form 1099-PATR, also known as Taxable Distributions Received From Cooperative, is mainly used to report distributions received from a cooperative.

If you are receiving a 1099-PATR form, then it represents that you were paid at least $10 in patronage dividends or any other distributions from the cooperatives. Therefore, if you receive any kind of distribution, it should be included in your personal tax return form as taxable income.

In most cases, the 1099-PATR mainly reports dividends associated with farms, but you might also receive this form for other reasons.

2. What Is a Patronage Dividend?

A Patronage Dividend is also known as a patronage refund, is a distribution from cooperatives to their members or investors. If the business makes a certain profit, it will be distributed among the individuals. Once the profit is determined, the cooperatives calculate the portion they want to share among individuals and investors based on their co-op's service.

3. Who Needs to File Form 1099-PATR?

Patronage Dividends are reported by Co-operatives. They report Form 1099-PATR to the IRS and then send a 1099-PATR copy to the individuals. Once you receive a 1099-PATR, make sure to report this cooperative distribution on your tax return. In addition, make sure that you are reporting this information in the right tax categories.

4. When is Form 1099-PATR issued?

Cooperatives must furnish the Copy A to the IRS by February 28, 2023. They are also required to send the recipient copy by January 31, 2023.

If the cooperatives plan to file 1099-PATR electronically, the due date is March 31, 2023.

5. Information required to E-file Form 1099-PATR

The information required to e-file Form 1099-PATR is

  • Payer's Details (Payer's Name, Address, TIN)
  • Recipient's Details (Recipient's Name, Address)
  • Patronage Details

File Form 1099-PATR now with TaxBandits in minutes!

6. What are the special considerations for Filing Form 1099-PATR?

The patronage dividend mentioned in IRS Form 1099-PATR is subject to self-employment tax. Likewise, cooperatives subject to the retail sale of goods and services for personal and living are exempt from filing a 1099-PATR.

7. Why Should I Choose TaxBandits for 1099-PATR filing?

TaxBandits is IRS authorized and one of the most trusted e-file service providers of Form 1099-PATR. We support the bulk filing of your 1099-PATR forms. Just download the Bulk Upload Template to begin importing your data!

With TaxBandits, the IRS Business Rules are built-in to the e-filing process to promote accurate forms.

We also support state filing. We also offer recipient copy solutions. We postal mail copies on your behalf and/or you can choose to provide your recipients with online form access.

Above all, the best thing is that you can file your 1099-PATR for as low as $0.80 per form with TaxBandits!

8. How to File 1099-PATR electronically?

To file 1099-PATR with TaxBandits, Just follow these steps,

  • Step 1: Enter the Payer & Recipient Details
  • Step 2: Review & Transmit Form 1099-PATR to the IRS
  • Step 3: Send Copies to Recipients

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