A recent IRS private letter ruling addresses whether a cooperative’s gain on sale of stock resulted in patronage or non-patronage income. This particular ruling follows many others that focus on the reason for acquiring the asset.
In Year 1, CORP
Cooperative Taxation
Section 501(c)(12) qualified transportation fringes
The IRS has provided guidance on how exempt taxpayers, like Section 501(c)(12) cooperatives, can claim a refund after the repealed provisions concerning qualified transportation fringes. You can visit the IRS site for more information.
…The Taxpayer Certainty and
New Law Fixes Tax Problem for Utility Cooperatives’ Grants
On December 20, 2019, the President signed into law the RURAL Act, H.R. 2147, which fixes an error in the 2019 tax reform law (Public Law 115-97). The error was expected to result in taxation of government grants, and Section …
IRS Issues Proposed Regulations for Cooperatives Under New Section 199A
The IRS issued proposed regulations to provide cooperatives and patrons guidance under New Section 199A, which was enacted as part of the tax reform act, Public Law 115-97 (the “Act”). See our prior blog posts about New Section 199A:
…Upcoming Presentation – Electric Cooperatives and Tax Reform: One Year Later
AHC attorney David Cook will present a webinar with CPA Bill Miller on the “Electric Cooperatives and Tax Reform: One Year Later — the Good, the Bad, and the Ugly.” The webinar will occur on April 23, 2019, at 2:00 …
Tax Reform Act Impacts Cooperatives, Part V: New Developments for Cooperatives Under Section 199A
Over the past year, we have been posting on the tax bill passed on December 22, 2017, as Public Law 115-97 (the “Original Act”). The Original Act substantially amended the Internal Revenue Code including provisions that directly impact cooperatives. Prior …
Tax Reform Act Impacts Cooperatives, Part IV: Impact on Governmental Grants
Perhaps the most impactful aspect of the recent tax reform law is the change to the treatment of governmental grants. Many cooperatives qualify for governmental grants in furtherance of their community benefits, such as electric, telephone, and broadband service and …
Tax Reform Act Impacts Cooperatives, Part III: Executive Compensation
Part III of the series on the impact of tax reform on cooperatives continues the prior part’s focus on tax-exempt organizations, including Section 501(c)(12) electric, telephone, and telecommunications cooperatives. This part discusses a tax imposed on excess executive compensation.
…On
Tax Reform Act Impacts Cooperatives, Part II: UBIT Changes
Part II of the series on the impact of tax reform on cooperatives discusses the changes to Unrelated Business Income Tax (“UBIT”). Whereas Part I primarily focused on taxable cooperatives and new Section 199A, this part focuses on tax-exempt …
Tax Reform Act Impacts Cooperatives: New Section 199A
On December 22, 2017, Congress’ new tax reform bill became law as Public Law 115-97 (the “Act”). The Act substantially amends the Internal Revenue Code including provisions that directly impact cooperatives. This post is the first in a series that …