COOPERATIVE REPORTING PREPARATION: FORM 1099-PATR
Reporting Year: 2026
System/Platform:
Date of Review:

QUALIFIED PAYMENTS & DEDUCTIONS (BOX 6 & 7)
[ ] Box 7 engine configured to report qualified payments regardless of deduction pass-through.
[ ] System validation enabled: Box 6 proposed amount <= (Box 7 * 0.09).
[ ] Written designation notices generated and scheduled for delivery within the payment period.
[ ] Process in place to ensure written notice amounts exactly match Box 6 final print.
[ ] Validation check: Box 1 (Patronage Dividends) and Box 3 (Per-Unit Retains) are NOT reduced by Box 6.
[ ] Corporate tax team notified of aggregate Box 6 amount to reduce cooperative's Sec. 1382 deduction.

QUALIFIED ITEMS (BOX 8 & 9)
[ ] Trade/business income correctly mapped to exclude tax-exempt/capital gains.
[ ] Non-SSTB qualified items routed exclusively to Box 8.
[ ] SSTB qualified items (health, law, accounting, etc.) routed exclusively to Box 9.

CREDITS & SPECIFIED STATUS (BOX 10-13)
[ ] Box 10 (Investment Credit) mapped to patron shares.
[ ] Box 11 (Work Opportunity Credit) mapped to patron shares.
[ ] Box 12 configured to state separately the TYPE and AMOUNT of each credit/deduction.
[ ] Box 12 labels clear (e.g., Form 8941, Form 8864, Form 8844).
[ ] Box 13 (Specified Cooperatives) checkbox logic enabled based on Section 199A(g)(4)(A) status.

CORRECTIONS & FURNISHING
[ ] Standard operating procedure established to issue matching corrected written notices when Box 6 is corrected.
[ ] Call center/support scripts updated to direct members to their written notices without providing individual tax advice.