1099 Forms › What is Form 1099-PATR? Patronage Dividends from Cooperatives
IRS FIRE System Ending December 31, 2026
The IRS is permanently retiring the FIRE system. All electronic information return filing will move to IRIS (Information Returns Intake System). If you currently file through FIRE, you must transition to IRIS before the deadline.
IRIS Migration GuideAt a Glance
Understanding IRS Form 1099-PATR
Form 1099-PATR (Taxable Distributions Received From Cooperatives) is used by cooperatives to report patronage dividends and other taxable distributions paid to their members or patrons.
Who Must File Form 1099-PATR?
Form 1099-PATR must be filed by cooperatives that pay:
- Patronage dividends of $10 or more
- Per-unit retain allocations
- Redemptions of nonqualified notices
- Pass-through credits to patrons
Common filers include agricultural cooperatives, credit unions, and rural electric cooperatives.
Form 1099-PATR Box Breakdown
| Box | Description |
|---|---|
| 1 | Patronage dividends |
| 2 | Nonpatronage distributions |
| 3 | Per-unit retain allocations |
| 4 | Federal income tax withheld |
| 5 | Redemption of nonqualified notices and retain allocations |
| 6 | Domestic production activities deduction |
| 7 | Investment credit |
| 8 | Work opportunity credit |
| 9 | Patron's AMT adjustment |
| 10 | Other credits and deductions |
What are Patronage Dividends?
Patronage dividends are distributions made by a cooperative to its members based on the quantity or value of business done with the cooperative. These dividends represent a return of excess revenue to the patrons and are generally taxable to the recipient.
E-File Form 1099-PATR with BoomTax
E-file your Form 1099-PATR with the IRS using BoomTax. Our platform handles bulk filing for cooperatives of all sizes.
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Filing Deadlines
- Recipient copy: January 31
- IRS filing (paper): February 28
- IRS filing (electronic): March 31
External Resources
Frequently Asked Questions About Form 1099-PATR
Form 1099-PATR is commonly issued by:
- Agricultural cooperatives (grain elevators, dairy co-ops, farm supply)
- Rural electric cooperatives
- Credit unions (for patronage refunds)
- Consumer cooperatives (food co-ops, housing co-ops)
- Worker-owned cooperatives
Yes, in most cases. Patronage dividends reported in Box 1 are generally taxable as ordinary income. However, the tax treatment depends on how the patron uses the cooperative:
- Business patrons: May offset against business expenses
- Personal patrons: Report as miscellaneous income
- Farmers: May report on Schedule F
Qualified patronage dividends are paid at least 20% in cash and are taxable to the patron in the year received. The cooperative deducts them when paid.
Nonqualified patronage dividends are not paid in cash (such as stock or retain certificates). They become taxable when redeemed in cash. Box 5 reports redemptions of nonqualified notices.
Per-unit retain allocations are amounts withheld by the cooperative from the sale price of products marketed for patrons. For example, a grain elevator might retain $0.05 per bushel of grain sold. These are reported in Box 3 and are taxable to the patron when received, even if paid in certificates rather than cash.
Where you report depends on how you used the cooperative:
- Farm use: Schedule F (Form 1040)
- Business use: Schedule C or applicable business return
- Personal use: Schedule 1, Line 8z (Other Income)
Any federal tax withheld (Box 4) is claimed as a credit on your return.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.