The Federal Highway Administration issued an interpretation of 23 U.S.C. Section 313(g) to apply the Buy America Requirement to utility relocations. Given the importance of federal funding to highway projects and the inevitable need for utility relocations, this interpretation can have important impacts on utility cooperatives. Read More »FWHA Imposes Buy America Requirement to Utility Relocations
AHC attorney David Cook will address the National Telecommunications Cooperative Association concerning recent developments in cooperative taxation. Cooperatives must comply with special tax rules to qualify, or continue to qualify, for tax advantages such as tax exemption or deduction and exemption of patronage earnings. The session will include options for allocation and retirement of capital credits and patronage dividends, along with recent IRS rulings in this area. He also will cover cooperative tax issues arising from consolidated reporting, the formation of subsidiaries, and various corporate transactions, such as liquidations and mergers. Read More »AHC Attorney David Cook Addresses NTCA Regarding Cooperative Taxation
A federal appellate court recently addressed a distribution cooperative’s lawsuit against a G&T cooperative with which it had a power purchase agreement. Though the lawsuit alleged the G&T cooperative breached the PPA, the latest ruling focused on whether federal courts have jurisdiction to hear the claim. Ultimately, the courts concluded that the claim belonged in state court, as it did not involve a question of federal law. Read More »Cooperative’s PPA Lawsuit Against G&T Remanded
This post comes from CFC Solutions Newsletter, Vol. 15, No. 25, July 1, 2013.
CFC recently filed comments with the Financial Accounting Standards Board (FASB) and Private Company Council (PCC) in response to an invitation to comment on private company financial accounting and reporting standards. CFC’s comments support the continued use of ASC 980 Regulated Operations—formerly Statement of Financial Accounting Standards No. 71.Read More »Guest Post: CFC Comments on Accounting Standards
AHC has formed a group on LinkedIn for business cooperatives. Here is a summary of the group and its purpose.
Business Cooperatives is dedicated to connecting business cooperatives and their leaders. By sharing their expertise and experiences, members will stay informed about cooperative operation, member relations and customer service, laws, finances, and taxes.Read More »New LinkedIn Group for Business Cooperatives
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
Cooperatives have been given conflicting guidance from the IRS concerning the proper treatment of discounting of capital credits. Specifically, some pronouncements indicate that the discount… Read More »Discounted Capital Credits and the Member Income Test: The Creation of a New Equity Account
This guest post is from CFC’s February 11, 2013 CFC Solutions Newsletter (Vol. 15, No. 6).
FROM THE CFO’S DESK
Enacting a Capital Credits Policy Change
Read More »Guest Post: Enacting a Capital Credits Policy Change
A prior blog post discussed a private ruling by the service regarding the allocation of purchase price among the assets of a renewable energy developer. Attorney David R. Cook discussed the ruling in a webinar on PPA taxation and recommended the participants to read the ruling with a dose of skepticism. As it turns out, on reconsideration, the Service has revoked the prior ruling because it “is not in accord with the current views of the Service.” Read More »IRS Revokes Potentially Beneficial Ruling for Renewable Energy Developers
The Service recently denied exemption to an organization that sought exemption under Section 501(c)(12) as a mutual ditch and irrigation company. The organization failed to… Read More »AHC Cooperative Tax Brief: Mutual Ditch and Irrigation Company Denied Exemption
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