Form 1099-PATR

What is Tax Form 1099-PATR?

Tax Form 1099-PATR is used to report patronage dividends, distributions, or other income paid to members or shareholders of cooperatives, as well as other similar organizations. Cooperatives distribute income to their members, and Form 1099-PATR helps ensure that the recipient properly reports the income on their tax return. The form reports the amount of income, including dividends or allocations, and any federal income tax withheld by the cooperative.

Who Needs to File Tax Form 1099-PATR?

You must file Form 1099-PATR if you are a cooperative or similar organization that meets the following conditions:

• You distributed $10 or more in patronage dividends or other distributions to members.
• You made payments of at least $600 for rent, services, prizes, or awards (excluding payments to employees).
• You allocated taxable distributions related to agricultural or fishing cooperatives.

This form helps report patronage dividends and certain other payments to the IRS, ensuring compliance with tax regulations. If you’re unsure whether you need to file, consult a tax professional!

When to File Tax Form 1099-PATR in 2025?

Here are the key deadlines for filing Tax Form 1099-PATR in 2025:

• January 31, 2025: Provide a copy of Form 1099-PATR to the recipient (the member or shareholder).
• February 28, 2025: File the form with the IRS by mail.
• March 31, 2025: File the form with the IRS electronically.

If you find any errors after filing, correct them promptly to avoid penalties.

What Are the Penalties for Filing Tax Form 1099-PATR Late?

If you fail to file Tax Form 1099-PATR on time, the IRS may impose penalties depending on how late your submission is. Here’s the breakdown:

• $50 per form: If filed up to 30 days late (by March 31, 2025).
• $110 per form: If filed more than 30 days late but before August 1, 2025.
• $280 per form: If filed after August 1, 2025 or if you fail to file at all.
• Higher penalties for intentional disregard: If you intentionally fail to file, the penalty can be $570 or more per form with no maximum limit.

To avoid penalties, file the form on time and promptly correct any errors if necessary. If you miss the deadline, it’s better to file late than not at all, as penalties increase the longer you wait.

How to File Tax Form 1099-PATR Online?

Filing Tax Form 1099-PATR online is a quick and efficient process. Follow these simple steps:

1. Choose an IRS-approved e-file provider:
   • Visit the IRS website or use trusted e-filing platforms like TurboTax or TaxAct.
2. Set up your account or log in:
   • Create a business profile, including your Employer Identification Number (EIN).
3. Input payment information:
   • Enter the recipient’s name, address, and Taxpayer Identification Number (TIN), along with the amount of patronage dividends or distributions.
4. Review the information:
   • Double-check the recipient’s details and the reported amount to avoid mistakes.
5. File the form electronically:
   • Submit the form via the e-file system and receive confirmation when the IRS accepts it.
6. Send a copy to the recipient:
   • Ensure that the recipient receives their copy by January 31, 2025.

Tips for Filing Tax Form 1099-PATR

Here are some helpful tips to file Tax Form 1099-PATR correctly:

1. Verify the filing requirement:
   • File the 1099-PATR if you’ve paid $10 or more in patronage dividends or other distributions.
2. Request accurate details:
   • Ensure you have the correct Taxpayer Identification Number (TIN) for the recipient.
3. Mind the deadlines:
   • Provide the form to recipients by January 31, 2025, and submit it to the IRS by the appropriate deadline.
4. Double-check for accuracy:
   • Carefully review all entries, especially the amounts and recipient information.
5. Consider e-filing:
   • E-filing is faster, minimizes errors, and provides instant confirmation.
6. Keep a record:
   • Retain copies of the form for at least 3 years for your records.
7. Fix any errors immediately:
   • Submit a corrected form if needed to avoid penalties.
8. Consult a tax professional if needed:
   • If unsure, ask for professional help to avoid mistakes.

These tips will help streamline the filing process and minimize potential issues.

1099-PATR Form FAQ