The IRS is seeking comment on Form 1099-PATR “Taxable Distributions Received from Cooperatives.” Under IRC Sec. 6044, Subchapter T cooperatives must issue Form 1099-PATR if patronage payments to any person exceeds $10 in the aggregate. However, the rule does not apply to certain consumer cooperatives — those that sell goods or services at retail for personal, living, or family use.
The purpose of the request is to:
- Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility.
- Evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used.
- Enhance the quality, utility, and clarity of the information to be collected; and
- Minimize the burden of the collection of information on those who are to respond, including using appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., by permitting electronic submissions of responses.
