In its 2013 Workplan, the IRS reported a “high level” of incorrect reporting by Section 501(c)(12) cooperatives. These errors primarily related to “miscalculation and misreporting” of member income percentages.
The IRS conducted a compliance check of Section 501(c)(12) cooperatives. The compliance check involved questionnaires and examinations. The IRS concluded that one-fourth of the cooperatives either (i) failed the Member Income Test or (ii) were not being operated on a cooperative or mutual basis. Given the high number of irregularities, cooperatives would be well advised to review these two important requirements. Read More »IRS Scrutinizes Section 501(c)(12) Cooperatives