# 26 U.S.C. § 6044: Returns regarding payments of patronage dividends Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 6044(a)(1). ## § 6044(a) Requirement of reporting **§ 6044(a)(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. **§ 6044(a)(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. ## § 6044(b) Amounts subject to reporting **§ 6044(b)(1) General rule.** Except as otherwise provided in this section, the amounts subject to reporting under subsection (a) are— **§ 6044(b)(1)(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)), **§ 6044(b)(1)(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), **§ 6044(b)(1)(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 **§ 6044(b)(1)(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 **§ 6044(b)(1)(E)** any amount described in section 1382(b)(4) (relating to redemption of nonqualified per-unit retain certificates). **§ 6044(b)(2) Exceptions.** The provisions of subsection (a) shall not apply, to the extent provided in regulations prescribed by the Secretary, to any payment— **§ 6044(b)(2)(A)** by a foreign corporation, or **§ 6044(b)(2)(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. ## § 6044(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. ## § 6044(d) Determination of amount paid For purposes of this section, in determining the amount of any payment— **§ 6044(d)(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 **§ 6044(d)(2)** a qualified written notice of allocation or a qualified per-unit retain certificate shall be taken into account at its stated dollar amount. ## § 6044(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— **§ 6044(e)(1)** the name, address, and phone number of the information contact of the cooperative required to make such return, and **§ 6044(e)(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. ## Regulations - [Treas. Reg. § 1.6044-1](/26/reg/1.6044-1.md): Returns of information as to patronage dividends with respect to patronage occurring in taxable years beginning before 1963. (interprets § 6044) - [Treas. Reg. § 1.6044-2](/26/reg/1.6044-2.md): Returns of information as to payments of patronage dividends. (interprets § 6044) - [Treas. Reg. § 1.6044-3](/26/reg/1.6044-3.md): Amounts subject to reporting. (interprets § 6044) - [Treas. Reg. § 1.6044-4](/26/reg/1.6044-4.md): Exemption for certain consumer cooperatives. (interprets § 6044) - [Treas. Reg. § 1.6044-5](/26/reg/1.6044-5.md): Statements to recipients of patronage dividends. (interprets § 6044) - [Treas. Reg. § 301.6044-1](/26/reg/301.6044-1.md): Returns of information regarding payments of patronage dividends. (interprets § 6044) ## Forms named in the regulations - [Form 1096](https://www.irs.gov/pub/irs-pdf/f1096.pdf) - [Form 3491](https://www.irs.gov/pub/irs-pdf/f3491.pdf) ## Final rules - [79 FR 41127](https://www.federalregister.gov/documents/2014/07/15/2014-16464/irs-truncated-taxpayer-identification-numbers) (2014): IRS Truncated Taxpayer Identification Numbers - [75 FR 64072](https://www.federalregister.gov/documents/2010/10/18/2010-25504/basis-reporting-by-securities-brokers-and-basis-determination-for-stock) (2010): Basis Reporting by Securities Brokers and Basis Determination for Stock - [69 FR 55743](https://www.federalregister.gov/documents/2004/09/16/04-19478/place-for-filing) (2004): Place for Filing - [65 FR 50405](https://www.federalregister.gov/documents/2000/08/18/00-20851/extension-of-due-date-for-electronically-filed-information-returns-limitation-of-failure-to-pay) (2000): Extension of Due Date for Electronically Filed Information Returns; Limitation of Failure To Pay Penalty for Individuals During Period of Installment Agreement - [62 FR 53387](https://www.federalregister.gov/documents/1997/10/14/97-25998/general-revision-of-regulations-relating-to-withholding-of-tax-on-certain-us-source-income-paid-to) (1997): General Revision of Regulations Relating to Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons and Related Collection, Refunds, and Credits; Revision of Information Reporting and Backup Withholding Regulations; and Removal of Regulations Under Part 35a and of Certain Regulations Under Income Tax Treaties ## Leading cases - [Farmers Cooperative Co. v. Commissioner, 288 F.2d 315 (8th Cir. 1961)](https://www.courtlistener.com/opinion/253498/farmers-cooperative-company-v-commissioner-of-internal-revenue/) ## Connections Cites: § 521 Exemption of farmers’ cooperatives from tax; § 1381 Organizations to which part applies; § 1382 Taxable income of cooperatives; § 1388 Definitions; special rules Cited by: § 3406 Backup withholding; § 6652 Failure to file certain information returns, registration statements, etc.; § 6724 Waiver; definitions and special rules Derived from: 1939 § 148 ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 746 - 1962-10-16: [Pub. L. 87-834](/26/act/87-834.md), 76 Stat. 1054 - 1966-11-13: [Pub. L. 89-809](/26/act/89-809.md), 80 Stat. 1584 - 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834 - 1982-09-03: [Pub. L. 97-248](/26/act/97-248.md), 96 Stat. 587 - 1983-08-05: [Pub. L. 98-67](/26/act/98-67.md), 97 Stat. 369 - 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2737 - 1996-07-30: [Pub. L. 104-168](/26/act/104-168.md), 110 Stat. 1469