26 U.S.C. § 6044 | Returns regarding payments of patronage dividends

(a)

Requirement of reporting

(1)

In general

Except as otherwise provided in this section, every cooperative to which part I of subchapter T of chapter 1 applies, which makes payments of amounts described in subsection (b) aggregating $10 or more to any person during any calendar year, shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.

(2)

Returns required by the Secretary

Every such cooperative which makes payments of amounts described in subsection (b) aggregating less than $10 to any person during any calendar year shall, when required by the Secretary, make a return setting forth the aggregate amount of such payments and the name and address of the person to whom paid.

(b)

Amounts subject to reporting

(1)

General rule

Except as otherwise provided in this section, the amounts subject to reporting under subsection (a) are—

(A)

the amount of any patronage dividend (as defined in section 1388(a)) which is paid in money, qualified written notices of allocation (as defined in section 1388(c)), or other property (except nonqualified written notices of allocation as defined in section 1388(d)),

(B)

any amount described in section 1382(c)(2)(A) (relating to certain nonpatronage distributions) which is paid in money, qualified written notices of allocation, or other property (except nonqualified written notices of allocation) by an organization exempt from tax under section 521 (relating to exemption of farmers’ cooperatives from tax),

(C)

any amount described in section 1382(b)(2) (relating to redemption of nonqualified written notices of allocation) and, in the case of an organization described in section 1381(a)(1), any amount described in section 1382(c)(2)(B) (relating to redemption of nonqualified written notices of allocation paid with respect to earnings derived from sources other than patronage), and

(D)

the amount of any per-unit retain allocation (as defined in section 1388(f)) which is paid in qualified per-unit retain certificates (as defined in section 1388(h)), and

(E)

any amount described in section 1382(b)(4) (relating to redemption of nonqualified per-unit retain certificates).

(2)

Exceptions

The provisions of subsection (a) shall not apply, to the extent provided in regulations prescribed by the Secretary, to any payment—

(A)

by a foreign corporation, or

(B)

to a foreign corporation, a nonresident alien, or a partnership not engaged in trade or business in the United States and composed in whole or in part of nonresident aliens.

(c)

Exemption for certain consumer cooperatives

A cooperative which the Secretary determines is primarily engaged in selling at retail goods or services of a type that are generally for personal, living, or family use shall, upon application to the Secretary, be granted exemption from the reporting requirements imposed by subsection (a). Application for exemption under this subsection shall be made in accordance with regulations prescribed by the Secretary.

(d)

Determination of amount paid

For purposes of this section, in determining the amount of any payment—

(1)

property (other than a qualified written notice of allocation or a qualified per-unit retain certificate) shall be taken into account at its fair market value, and

(2)

a qualified written notice of allocation or a qualified per-unit retain certificate shall be taken into account at its stated dollar amount.

(e)

Statements to be furnished to persons with respect to whom information is required

Every cooperative required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—

(1)

the name, address, and phone number of the information contact of the cooperative required to make such return, and

(2)

the aggregate amount of payments to the person required to be shown on the return.

The written statement required under the preceding sentence shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made and shall be in such form as the Secretary may prescribe by regulations.

Aug. 16, 1954, ch. 736 68A Stat. 746 Pub. L. 87–834, § 19(b)Oct. 16, 196276 Stat. 1054 Pub. L. 89–809, title II, § 211(d)Nov. 13, 196680 Stat. 1584 Pub. L. 94–455, title XIX, § 1906(b)(13)(A)Oct. 4, 197690 Stat. 1834 Pub. L. 97–248, title IIISept. 3, 198296 Stat. 587 Pub. L. 98–67, title IAug. 5, 198397 Stat. 369 Pub. L. 99–514, title XV, § 1501(c)(3)Oct. 22, 1986100 Stat. 2737 Pub. L. 104–168, title XII, § 1201(a)(4)July 30, 1996110 Stat. 1469(, ; , , ; , , ; , , ; , §§ 304, 308(a), , , 591; , §§ 102(a), 108(c), , , 383; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 104–1681996—Subsec. (e)(1). substituted “name, address, and phone number of the information contact” for “name and address”.

Pub. L. 99–5141986—Subsec. (e). , in amending subsec. (e) generally, substituted “information is required” for “information is furnished” in heading and, in text, substituted references to persons required to make a return for former references to persons making a return and struck out provision directing that no statement was required if the aggregate amount of payments made to the person as shown on the return was less than $10.

Pub. L. 98–67 Pub. L. 97–2481983— substituted in subsec. (e) “The written statement required under the preceding sentence shall be furnished (either in person or in a separate mailing by first-class mail) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made, and shall be in such form as the Secretary may prescribe by regulations” for “The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a)(1) was made” and repealed amendments made by . See 1982 Amendment note below.

Pub. L. 97–248June 30, 1983Pub. L. 98–67, title IAug. 5, 198397 Stat. 369 Pub. L. 97–248June 30, 19831982—Subsecs. (a)(1), (b)(1), (e), (f). provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after , subsecs. (a)(1), (b)(1), and (e) are amended and a new subsec. (f) is added. Section 102(a), (b) of , , , repealed subtitle A (§§ 301–308) of as of the close of , and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.

Pub. L. 94–4551976— struck out “or his delegate” after “Secretary” wherever appearing.

Pub. L. 89–809, § 211(d)(1)1966—Subsec. (b)(1). , added subpars. (D) and (E).

Pub. L. 89–809, § 211(d)(2)Subsec. (d). , inserted references to qualified per-unit retain certificates.

Pub. L. 87–8341962— substituted “Returns regarding payments of patronage dividends” for “Returns regarding patronage dividends” in section catchline and amended text generally. Prior to amendment, text read as follows:

Payments ofor More“(a) $100 .—Any corporation allocating amounts as patronage dividends, rebates, or refunds (whether in cash, merchandise, capital stock, revolving fund certificates, retain certificates, certificates of indebtedness, letters of advice, or in some other manner that discloses to each patron the amount of such dividend, refund, or rebate) shall make a return showing—

“(1) The name and address of each patron to whom it has made such allocations amounting to $100 or more during the calendar year; and

“(2) The amount of such allocations to each patron.

Payments Regardless of Amount“(b) .—If required by the Secretary or his delegate, any such corporation shall make a return of all patronage dividends, rebates, or refunds made during the calendar year to its patrons.

Exceptions“(c) .—This section shall not apply in the case of any corporation (including any cooperative or nonprofit corporation engaged in rural electrification) described in section 501(c)(12) or (15) which is exempt from tax under section 501(a), or in the case of any corporation subject to a tax imposed by subchapter L of chapter 1.”

Statutory Notes and Related Subsidiaries

Effective Date of 1996 Amendment

Pub. L. 104–168Dec. 31, 1996section 1201(b) of Pub. L. 104–168 section 6041 of this titleAmendment by applicable to statements required to be furnished after (determined without regard to any extension), see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–514Oct. 22, 1986section 1501(e) of Pub. L. 99–514 section 6721 of this titleAmendment by applicable to returns the due date for which (determined without regard to extensions) is after , see , set out as an Effective Date note under .

Effective Date of 1983 Amendment

section 108(c) of Pub. L. 98–67Dec. 31, 1983section 110(a) of Pub. L. 98–67 section 31 of this titleAmendment by applicable with respect to payments made after , see , set out as a note under .

Effective Date of 1966 Amendment

Pub. L. 89–809 section 211(e)(2) of Pub. L. 89–809 section 1382 of this titleAmendment by applicable with respect to calendar years after 1966, see , set out as a note under .

Effective Date of 1962 Amendment

Pub. L. 87–834Jan. 1, 1963Jan. 1, 1963Jan. 1, 1963section 19(h) of Pub. L. 87–834 section 6042 of this titleAmendment by applicable to payments of dividends and interest made on or after , and to payments of amounts described in subsection (b) of this section made on or after , with respect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after , see , set out as a note under .