IRS Form 1099-PATR – If you’re a member of a cooperative, such as a farmers’ co-op or credit union, you may receive IRS Form 1099-PATR at tax time. This form reports taxable distributions like patronage dividends, which can impact your tax return. Understanding Form 1099-PATR is essential for accurate reporting and avoiding penalties. In this guide, we’ll break down what the form is, who uses it, how to interpret its boxes, and how to report it on your taxes. We’ll draw from official IRS resources to ensure the information is reliable and up-to-date as of 2026.
What Is IRS Form 1099-PATR?
IRS Form 1099-PATR, titled “Taxable Distributions Received From Cooperatives,” is an information return used by cooperatives to report payments made to their members or patrons. These payments typically include patronage dividends, which are refunds or rebates based on the co-op’s profits and the member’s business with it. The form helps the IRS track taxable income from these sources.
Cooperatives must file Form 1099-PATR for each person who received at least $10 in patronage dividends or other distributions under Internal Revenue Code section 6044(b). They also file it if they withheld any federal income tax under backup withholding rules, regardless of the amount. This ensures that recipients report the income correctly on their tax returns.
The form is not for dividends on capital stock—that’s reported on Form 1099-DIV instead. Additionally, certain consumer cooperatives primarily selling goods for personal use may be exempt from filing if they obtain approval via Form 3491.
For tax year 2025, the instructions emphasize reporting only pass-through items that patrons can claim on their returns, such as income, expenses, and credits.
Who Receives and Files Form 1099-PATR?
Who Files It?
Cooperatives, including farmers’ cooperatives under section 521, file Form 1099-PATR. They must provide a copy to the recipient (Copy B) and file with the IRS. Electronic filing is encouraged, and statements to recipients can be furnished online using the fillable PDF at IRS.gov/Form1099PATR.
Exemptions apply to payments to corporations, tax-exempt organizations, governments, or certain trusts. However, if backup withholding occurred, filing is required regardless.
Who Receives It?
You might receive Form 1099-PATR if you’re a patron of a cooperative and received qualifying distributions. Common recipients include farmers, members of agricultural co-ops, or those in credit unions. If the distributions total at least $10, or if tax was withheld, expect this form by January 31 of the following year.
Note: If the dividends stem from personal purchases (not business-related), they may not be taxable. Subtract those from the total before reporting.
Key Boxes on Form 1099-PATR Explained
Form 1099-PATR includes several boxes detailing the distributions. Here’s a breakdown based on the latest instructions:
- Box 1: Patronage Dividends – Total patronage dividends paid in cash, qualified written notices, or other property (excluding nonqualified notices). Report as ordinary income.
- Box 2: Nonpatronage Distributions – For section 521 cooperatives only, distributions from nonpatronage sources, like government business.
- Box 3: Per-Unit Retain Allocations – Allocations treated as paid in money for qualified per-unit retain certificates.
- Box 4: Federal Income Tax Withheld – Backup withholding amount. This is creditable on your return.
- Box 5: Redeemed Nonqualified Notices – Redemption payments for nonqualified notices.
- Box 6: Section 199A(g) Deduction – Patron’s share of the cooperative’s domestic production activities deduction.
- Box 7: Qualified Payments (Section 199A(b)(7)) – Payments eligible for reduction in the patron’s QBI deduction.
- Box 8: Section 199A(a) Qualified Items – Items for computing the patron’s QBI deduction.
- Box 9: Section 199A(a) SSTB Items – Specified service trade or business items.
- Box 10: Credits and Other Items – Various credits, like alternative minimum tax info.
- Box 11: Specified Coop – Checked if the cooperative qualifies under section 199A(g)(4)(A).
Other fields include payer and recipient details, account numbers, and the 2nd TIN notice if applicable.
How to Report IRS Form 1099-PATR on Your Tax Return?
Reporting depends on your situation:
- For Farming or Business Income: Enter amounts from Boxes 1, 2, 3, and 5 on Schedule F (Form 1040) Line 3a and 3b for farm income, or Schedule C for business income.
- Non-Farm/Co-op Dividends: Report as other income on Schedule 1 (Form 1040), or as business income on Schedule C if applicable.
- Personal Use Purchases: If dividends are from personal items, they may not be reportable. Subtract them from the total per IRS Publication 225.
- Box 4 Withholding: Claim as a credit on Form 1040.
- Section 199A Deductions (Boxes 6-9): Use Form 8995 or 8995-A to claim the qualified business income deduction.
- Box 10: May require Form 6251 for alternative minimum tax.
Always consult a tax professional for complex situations, as improper reporting can lead to penalties.
Common Questions About IRS Form 1099-PATR
Here are answers to frequently asked questions based on IRS guidance:
- Is all income on Form 1099-PATR taxable? Not necessarily. Personal use portions may be excluded, but business-related distributions are generally taxable.
- What if I don’t receive my 1099-PATR? You’re still responsible for reporting the income. Contact the cooperative for a copy.
- Can I e-file my return with 1099-PATR income? Yes, most tax software supports it.
- Are there penalties for not filing? Cooperatives face penalties for late or incorrect filing; recipients may owe back taxes plus interest if unreported.
- How does this affect my qualified business income deduction? Boxes 6-9 provide key data for the 20% QBI deduction under section 199A.
For more FAQs, refer to IRS Publication 225 or the form’s instructions.
Download IRS Form 1099-PATR
To view or download the info copy of Form 1099-PATR, use this official IRS link: https://www.irs.gov/pub/irs-pdf/f1099ptr.pdf. For the full instructions, visit IRS.gov/Form1099PATR.
Staying informed about IRS Form 1099-PATR ensures smooth tax filing. If you have questions, check IRS.gov or consult a tax advisor. This article is for informational purposes and not tax advice.