Internal Revenue Code:Sec. 6044. Returns regarding payments of patronage dividends

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle F - Procedure and Administration
       CHAPTER 61 - INFORMATION AND RETURNS
        Subchapter A - Returns and Records
         PART III - INFORMATION RETURNS
          Subpart B - Information Concerning Transactions With Other Persons
        

Statute

    Sec. 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 of 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.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 746; Pub. L. 87-834, Sec. 19(b),
    Oct. 16, 1962, 76 Stat. 1054; Pub. L. 89-809, title II, Sec.
    211(d), Nov. 13, 1966, 80 Stat. 1584; Pub. L. 94-455, title XIX,
    Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-248,
    title III, Sec. 304, 308(a), Sept. 3, 1982, 96 Stat. 587, 591; Pub.
    L. 98-67, title I, Sec. 102(a), 108(c), Aug. 5, 1983, 97 Stat. 369,
    383; Pub. L. 99-514, title XV, Sec. 1501(c)(3), Oct. 22, 1986, 100
    Stat. 2737; Pub. L. 104-168, title XII, Sec. 1201(a)(4), July 30,
    1996, 110 Stat. 1469.)
 

Miscellaneous

                                 AMENDMENTS
      1996 - Subsec. (e)(1). Pub. L. 104-168 substituted ''name,
    address, and phone number of the information contact'' for ''name
    and address''.
      1986 - Subsec. (e). Pub. L. 99-514, 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.
      1983 - Pub. L. 98-67 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 Pub. L. 97-248. See 1982 Amendment note below.
      1982 - Subsecs. (a)(1), (b)(1), (e), (f). Pub. L. 97-248 provided
    that, applicable to payments of interest, dividends, and patronage
    dividends paid or credited after June 30, 1983, subsecs. (a)(1),
    (b)(1), and (e) are amended and a new subsec. (f) is added.
    Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97
    Stat. 369, repealed subtitle A (Sec. 301-308) of Pub. L. 97-248 as
    of the close of June 30, 1983, 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.
      1976 - Pub. L. 94-455 struck out ''or his delegate'' after
    ''Secretary'' wherever appearing.
      1966 - Subsec. (b)(1). Pub. L. 89-809, Sec. 211(d)(1), added
    subpars. (D) and (E).
      Subsec. (d). Pub. L. 89-809, Sec. 211(d)(2), inserted references
    to qualified per-unit retain certificates.
      1962 - Pub. L. 87-834 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:
      ''(a) Payments of $100 or More. - 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.
      ''(b) Payments Regardless of Amount. - 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.
      ''(c) Exceptions. - 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.''
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-168 applicable to statements required to
    be furnished after Dec. 31, 1996 (determined without regard to any
    extension), see section 1201(b) of Pub. L. 104-168, set out as a
    note under section 6041 of this title.
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by Pub. L. 99-514 applicable to returns the due date
    for which (determined without regard to extensions) is after Oct.
    22, 1986, see section 1501(e) of Pub. L. 99-514, set out as an
    Effective Date note under section 6721 of this title.
                      EFFECTIVE DATE OF 1983 AMENDMENT
      Amendment by section 108(c) of Pub. L. 98-67 applicable with
    respect to payments made after Dec. 31, 1983, see section 110(a) of
    Pub. L. 98-67, set out as a note under section 31 of this title.
                      EFFECTIVE DATE OF 1966 AMENDMENT
      Amendment by Pub. L. 89-809 applicable with respect to calendar
    years after 1966, see section 211(e)(2) of Pub. L. 89-809, set out
    as a note under section 1382 of this title.
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Amendment by Pub. L. 87-834 applicable to payments of dividends
    and interest made on or after Jan. 1, 1963, and to payments of
    amounts described in subsection (b) of this section made on or
    after Jan. 1, 1963, with respect to patronage occurring on or after
    the first day of the first taxable year of the cooperative
    beginning on or after Jan. 1, 1963, see section 19(h) of Pub. L.
    87-834, set out as a note under section 6042 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 3406, 6041, 6652, 6724 of
    this title.