IRS Form Change Affects Coops
An Internal Revenue Service (IRS) change could affect the way that electric coops report capital credits on federal tax forms. The change affects Form 990, which organizations exempt from federal income taxes must file annually to provide their financial information to the government. New language in the instructions of Form 990 states that “patronage dividends paid” by tax-exempt electric coops should be reported as “benefits paid to or for members” (Form 990, part IX, line 4). Uncertainty surrounding this language means that coops should consult their tax advisers. The form is due May 15 for most coops. Read more here.