1099-PATR Frequently Asked Questions (FAQ)

 

 

 

Haven’t received your 1099 or Box 3 Detail Sheet?

 

 

 

  • 1099s and Box 3 Detail Sheets will be sent out by the end of January each year

  • A Domestic Production Report (Box 3 Detail Sheet) is included with your 1099. If you didn’t receive one or both, please contact your local settlement location to request a copy.

  • For the 2024 tax year, Premier Cooperative has introduced a new format for the Box 3 Detail Sheet. The report now includes:

    • Deductions from defer payments,

    • Invoiced totals by product, and

    • A summary of expenses paid to Premier Cooperative.

 

 

 

 

 

Why don’t my checks add up to the Box 3 amount?

 

 

 

 

  • The check you receive reflects the amount after deducting any expenses owed. However, the IRS requires Premier Cooperative to report your gross earnings, which is the amount you would have been paid before expenses like checkoff fees, drying costs, storage/service fees, and others. This distinction aligns with the IRS rule that farm production revenue must be reported separately from expenses.

 

 

 

 

 

Why has the name on my 1099 changed or why is it different?

 

 

 

 

 

  • To comply with IRS requirements, Premier Cooperative collects W-9 forms and Tax ID numbers from producers. The name on your account must match the legal name registered with the IRS.

 

 

 

 

 

Why do I have an amount in Box 1 and 5?

 

 

 

 

  • Box 1 shows the taxable portion of qualified patronage received from Premier Cooperative in 2024. 

    • Qualified equity: Taxed in the year it’s awarded.

    • In 2024, Premier Cooperative awarded qualified equity for the Fiscal Year 2023 and issued checks to cover the taxable portion.

  • Box 5 shows the taxable portion of non-qualified patronage.

    • Non-qualified equity: Taxed in the year it’s redeemed (not awarded)

    • In 2023, Premier Cooperative awarded non-qualified equity for the Fiscal Year 2022. 

 

 

 

 

 

Why do I have an amount in Box 6?

 

 

 

 

 

  • Box 6 reflects the DPAD (Domestic Production Activities Deduction), governed by Internal Revenue Code Section 199A(g)(2). Premier Cooperative’s Board of Directors has the discretion to pass this deduction on to cooperative patrons to help reduce their tax liability when it will not benefit Premier Cooperative

 

 

 

 

 

What should I do if my personal information on the 1099-PATR is incorrect?

 

 

 

 

  • If your name, Social Security Number, or EIN is incorrect, please contact us via phone at (217)-355-1983 or email contact@premiercooperative.net so we can update your records.

 

 

 

 

 

What if I never received one of the checks listed on my 1099?

 

 

 

 

 

  • If you’re missing a check, contact your local settlement location and provide the check number. They can reissue lost checks as needed.

 

 

 

 

 

What if someone else cashed my check, but it’s reported on my 1099?

 

 

 

 

  • Income is assigned to the individual who produced or controlled the grain. Changing the name on the check doesn’t change the associated 1099. To avoid this issue:

    • Ensure that grain deliveries are set up under the correct account name, or

    • Use a transfer of ownership settlement to assign control (and income) to the proper individual.

 

 

 

 

 

How do I transfer income from one 1099-PATR to another?

 

 

 

 

 

  • Transferring income between 1099-PATRs requires the consent of all involved parties. Please complete the necessary form from your settlement location to process this transfer. 1099 Correction Request Form

 

 

 

 

 

What is Paid on Settlement? 

 

 

 

 

 

  • Paid on Settlement means that the charge was originally invoiced out and then paid on a settlement. The settlement could have been paid in 2024 or the invoiced charges were paid on your 2025 deferred payment.