Federal U.S. Income Tax Return for Cooperative Associations

U.S. Income Tax Return for Cooperative Associations
2023 Form 1120-C
1120-C

Department of the Treasury
Internal Revenue Service

A Check if:
(1) Consolidated return
(attach Form 851)
(2) Schedule M-3 (Form
1120) attached
(3) Form 1120 filed in
previous tax year

Deductions (See instructions for limitations on deductions.)

Income

D

Check if:

(1)

U.S. Income Tax Return for Cooperative Associations

For calendar year 2023 or tax year beginning

, 2023, ending

2023

Name

B Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

C
(1)

City or town, state or province, country, and ZIP or foreign postal code

Initial return

(2)

Final return

(3)

Name change

(4)

Address change

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25a

(5)

Check if:
Farmers’ tax exempt
cooperative . . .
(2) Nonexempt
cooperative . . .
Amended return

Gross receipts or sales
b Less returns and allowances
c Bal
Cost of goods sold (see instructions—attach Form 1125-A) . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . .
Dividends and inclusions (Schedule C, line 23) . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross rents and royalties . . . . . . . . . . . . . . . . . . . . . . . .
Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . . .
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . .
Other income (see instructions—attach statement) . . . . . . . . . . . . . . . .
Total income. Add lines 3 through 9
. . . . . . . . . . . . . . . . . . . .
Compensation of officers (attach Form 1125-E) . . . . . . . . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . .
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . .
Employee benefit programs
. . . . . . . . . . . . . . . . . . . . . . .
Section 199A(g) deduction (see instructions) . . . . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 11 through 23 . . . . . . . . . . . . . . . . . .
Taxable income before adjustments and special deductions. Subtract line
24 from line 10 . . . . . . . . . . . . . . . . . . . .
25a
b Deductions and adjustments from Schedule H, line 5 . . . . . . .
25b
c Taxable income before net operating loss and special deductions. Subtract line 25b from line 25a
26a Net operating loss deduction (see instructions) . . . . . . . . .
26a
b Special deductions (Schedule C, line 24) . . . . . . . . . . .
26b
c Add lines 26a and 26b . . . . . . . . . . . . . . . . . . . . . . . . .

Sign
Here

OMB No. 1545-0123

, 20

Go to www.irs.gov/Form1120C for instructions and the latest information.
Please type or print

Form

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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is
true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Signature of officer

Paid
Preparer
Use Only

Print/Type preparer’s name

Date
Preparer’s signature

May the IRS discuss this return
with the preparer shown below?
See instructions.
Yes
No

Title
Date

Firm’s name

PTIN

Firm’s EIN

Firm’s address

For Paperwork Reduction Act Notice, see separate instructions.

Check
if
self-employed

Phone no.
Cat. No. 47554F

Form 1120-C (2023)

Page 2

Form 1120-C (2023)

Taxable income. Subtract line 26c from line 25c. See instructions . . . . . . . . . . .
Total tax (Schedule J, line 10) . . . . . . . . . . . . . . . . . . . . . . .
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .
Preceding year’s overpayment credited
to current year . . . . . . . . . 30a
b Current year’s estimated tax payments . 30b
c Current year’s refund applied for on Form 4466 30c (
) d Bal .
30d
e Tax deposited with Form 7004
. . . . . . . . . . . . . .
30e
f Credit for tax paid on undistributed capital gains (attach Form 2439) . .
30f
g Credit for federal tax paid on fuels (attach Form 4136) . . . . . . .
30g
h Section 1383 adjustment (see instructions)
. . . . . . . . . .
30h
i Elective payment election amount from Form 3800 . . . . . . . .
30i
31
Estimated tax penalty. See instructions. Check if Form 2220 is attached . . . . . . . .
32
Amount owed. If line 30j is smaller than the total of lines 28 and 31, enter amount owed . . .
33
Overpayment. If line 30j is larger than the total of lines 28 and 31, enter amount overpaid . . .
34
Enter amount of line 33 you want: Credited to 2024 estimated tax
Refunded

Tax, Refundable Credits, and Payments

27
28
29
30a

Schedule C
1
2
3

Dividends, Inclusions, and Special Deductions
(see instructions)

(a) Dividends
and inclusions

Dividends from less-than-20%-owned domestic corporations (other than
debt-financed stock) . . . . . . . . . . . . . . . . . .
Dividends from 20%-or-more-owned domestic corporations (other than
debt-financed stock) . . . . . . . . . . . . . . . . . .
Dividends on certain debt-financed stock of domestic and foreign
corporations . . . . . . . . . . . . . . . . . . . . .

4
5
6
7
8

Dividends on certain preferred stock of less-than-20%-owned public utilities
Dividends on certain preferred stock of 20%-or-more-owned public utilities
Dividends from less-than-20%-owned foreign corporations and certain FSCs
Dividends from 20%-or-more-owned foreign corporations and certain FSCs
Dividends from wholly owned foreign subsidiaries . . . . . . . .

9
10

Subtotal. Add lines 1 through 8. See instructions for limitations . . . .
Dividends from domestic corporations received by a small business
investment company operating under the Small Business Investment Act
of 1958 . . . . . . . . . . . . . . . . . . . . . .

11

Dividends from affiliated group members

12
13

Dividends from certain FSCs . . . . . . . . . . . . . . .
Foreign-source portion of dividends received from a specified 10%-owned
foreign corporation (excluding hybrid dividends) (see instructions) . . .
Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12,
or 13 (including any hybrid dividends) . . . . . . . . . . . . .

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15
16a

b
c

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Reserved for future use . . . . . . . . . . . . . . . . .
Subpart F inclusions derived from the sale by a controlled foreign
corporation (CFC) of the stock of a lower-tier foreign corporation treated as
a dividend (attach Form(s) 5471) (see instructions) . . . . . . . .
Subpart F inclusions derived from hybrid dividends of tiered corporations
(attach Form(s) 5471) (see instructions) . . . . . . . . . . . .
Other inclusions from CFCs under subpart F not included on line 16a, 16b,
or 17 (attach Form(s) 5471) (see instructions) . . . . . . . . . .

27
28
29

30j
31
32
33
34

(b) %

(c) Special deductions
((a) × (b))

50
65
See
instructions
23.3
26.7
50
65
100
See
instructions

100
100
See
instructions
100

100

17
18
19
20
21
22
23

Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992)
Gross-up for foreign taxes deemed paid (see instructions) . . . . . .
IC-DISC and former DISC dividends not included on line 1, 2, or 3 . . .
Other dividends . . . . . . . . . . . . . . . . . . . .
Deduction for dividends paid on certain preferred stock of public utilities .
Section 250 deduction (attach Form 8993) . . . . . . . . . . .
Total dividends and inclusions. Add column (a), lines 9 through 20. Enter
here and on page 1, line 4 . . . . . . . . . . . . . . . .

24

Total special deductions. Add column (c), lines 9 through 13, 16, 21, and 22. Enter here and on page 1, line 26b
Form 1120-C (2023)

Page 3

Form 1120-C (2023)

Schedule G

Allocation of Patronage and Nonpatronage Income and Deductions
Note: Before completing Schedule G, see Schedule K, question 14.
(a) Patronage

1
2
3
4
5
6a
b
c
7
8
9a
b
10
11
12
13

Dividends paid on capital stock (section 521 cooperatives only) . . . . .
Nonpatronage income allocated to patrons (section 521 cooperatives only) .
Patronage dividends:
a Money . . . . . . . . . . . . . . . . . . . . . . . .
b Qualified written notices of allocation . . . . . . . . . . . . . .
c Other property (except nonqualified written notices of allocation) . . . .
d Money or other property (except written notices of allocation) in redemption
notices of allocation . . . . . . . . . . . . . . . . . . .

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of
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nonqualified written
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Section 199A(g) deduction allocated to patrons (see instructions) . . . . . . . . . .
Total. Combine lines 1 through 4. Enter here and on page 1, line 25b, and Schedule G, line 8 .

Schedule J
1
2
3
4
5a
b
c
d
e
6
7
8a
b
c
z
9
10

8
9a
9b
10
11
12
13

Deductions and Adjustments Under Section 1382 (see instructions)

1
2
3

4
5

7

Net operating loss deduction (attach statement) . . . . . . . . . . . .
Special deductions (see instructions) . . . . . . . . . . . . . . . .
Taxable income. Subtract the total of lines 8, 9a, and 9b from line 7 . . . . .
Combined taxable income. Combine columns (a) and (b) of line 10. See instructions
Unused patronage loss (see instructions) . . . . . . . . . . . . . .
Unused nonpatronage loss (see instructions) . . . . . . . . . . . . .

Schedule H

(b) Nonpatronage

1
2
3
4
5
6a
6b
6c

Gross receipts or sales . . . . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1 . . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . . . . . .
Total income. Combine lines 3 and 4 . . . . . . . . . . . . . . .
Section 199A(g) deduction (see instructions) . . . . . . . . . . . . .
Other deductions . . . . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 6a and 6b . . . . . . . . . . . . . . .
Taxable income before section 1382, NOL, and special deductions. Subtract line 6c
from line 5 . . . . . . . . . . . . . . . . . . . . . . . .
Deductions and adjustments under section 1382 from Schedule H, line 5 (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . .

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1
2
3a
3b
3c
3d
4 (
5

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Tax Computation (see instructions)

Income tax (see instructions) . . . . . . . . . . . . . . . . . . .
Base erosion minimum tax amount (attach Form 8991) . . . . . . . . . . .
Corporate alternative minimum tax from Form 4626, Part II, line 13 (attach Form 4626)
Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118)
. . . . . . . . . . . . .
5a
Credit from Form 8834 (see instructions) . . . . . . . . . . . .
5b
General business credit (see instructions—attach Form 3800)
. . . . .
5c
Credit for prior year minimum tax (attach Form 8827) . . . . . . . .
5d
Bond credits from Form 8912 (attach Form 8912)
. . . . . . . . .
5e
Total credits. Add lines 5a through 5e . . . . . . . . . . . . . . . .
Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . .
Recapture of investment credit (attach Form 4255) . . . . . . . . .
8a
Recapture of low-income housing credit (attach Form 8611) . . . . . .
8b
Alternative tax on qualifying shipping activities (attach Form 8902) . . . .
8c
Other (see instructions—attach statement) . . . . . . . . . . . .
8z
Total. Add lines 8a through 8z . . . . . . . . . . . . . . . . . . .
Total tax. Add lines 7 and 9. Enter here and on page 2, line 28 . . . . . . . .

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Form 1120-C (2023)

Page 4

Form 1120-C (2023)

Schedule K
1
2

3
4

5
6

Other Information (see instructions)

Check accounting method: a
Cash
b
Accrual c
Other (specify)
See the instructions and enter the:
a Business activity code no.
b Business activity
c Product or service
d Date of incorporation
Check the accounting method used to compute distributable patronage:
a
Book
b
Tax
c
Other (specify)
At the end of the tax year, did the cooperative own, directly or indirectly, 50% or more of the voting stock of a
domestic corporation? (For rules of attribution, see section 267(c).) . . . . . . . . . . . . . . . . .
If “Yes,” attach a statement showing: (a) name and employer identification number (EIN), (b) percentage owned, and (c) taxable
income or (loss) before NOL and special deductions of such corporation for the tax year ending with or within your tax year.

Yes No

Is the cooperative a subsidiary in an affiliated group or a parent–subsidiary controlled group? . . . . . . . .
If “Yes,” enter name and EIN of the parent corporation
At the end of the tax year, did any individual, partnership, corporation, estate, or trust own, directly or indirectly, 50%
or more of the cooperative’s voting stock? (For rules of attribution, see section 267(c).) . . . . . . . . . .

If “Yes,” attach a statement showing name and identifying number. Do not include any information already entered in
5 above. Enter percentage owned . . . . . . . . . . . . . . . . . . . . . .
7
Enter the cooperative’s total assets. See instructions . . . . . . . . . . . . . $
8
At any time during this tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of
all classes of stock of the cooperative entitled to vote, or (b) the total value of all classes of stock of the cooperative? . . .
If “Yes,” enter: (a) Percentage owned
and (b) Owner’s country
c The cooperative may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business. Enter number of Forms 5472 attached
. . .
9
Check this box if the cooperative issued publicly offered debt instruments with original issue discount . . . .
If checked, the cooperative may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments.
10
Enter the amount of tax-exempt income received or accrued during this tax year (for example, interest or
extraterritorial income) . . . . . . . . . . . . . . . . . . . . . . $
11a Enter the number of foreign patrons at the end of the tax year . . . . . . . . .
b Enter the total amount of patronage distributions described in (or deducted under) IRC 1382(b) paid or allocated to
foreign patrons . . . . . . . . . . . . . . . . . . . . . . . . . .
12

If the cooperative has an NOL for the tax year and is electing to forego the carryback period, check here. See instructions
If filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the
election will not be valid.

13

Enter the available NOL carryover from prior tax years. Do not reduce it by any deduction on page 1, line 26a.
Patronage . . . . . $
Nonpatronage . . . . $
Are the cooperative’s total receipts (page 1, line 1a plus lines 4 through 9) for the tax year and its total assets at the
end of the tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . .

14

15
16
17

If “Yes,” the cooperative is not required to complete Schedule G, L, M-1, or M-2. Instead, enter the total amount of cash
distributions and the book value of property distributions (other than cash) made during this tax year $
Enter the amount of outstanding nonqualified notices of allocation (attach statement) . . . . . . .
Does the cooperative have gross receipts of at least $500 million in any of the 3 preceding tax years? (see section 59A(e)
(2) and (3)). If “Yes,” complete and attach Form 8991 . . . . . . . . . . . . . . . . . . . . . .
Did the cooperative have an election under section 163(j) for any real property trade or business or any farming
business in effect during this tax year? (see instructions) . . . . . . . . . . . . . . . . . . . .

18

Does the cooperative satisfy one or more of the following? If “Yes,” complete and attach Form 8990. See instructions .
a The cooperative owns a pass-through entity with current, or prior year carryover, excess business interest expense.
b The cooperative’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years
preceding the current tax year are more than $29 million and the cooperative has business interest expense.
c The cooperative is a tax shelter and the cooperative has business interest expense.
19
Is the cooperative a member of a controlled group? If “Yes,” attach Schedule O (Form 1120). See instructions . .
20
Corporate Alternative Minimum Tax:
a Was the cooperative an applicable corporation under section 59(k)(1) in any prior tax year? . . . . . . . . .
If “Yes,” go to question 20b. If “No,” skip to question 20c.
b Is the cooperative an applicable corporation under section 59(k)(1) in the current tax year because the cooperative
was an applicable corporation in the prior tax year? . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” complete and attach Form 4626. If “No,” continue to question 20c.
c Does the cooperative meet the requirements of the safe harbor method as provided under section 59(k)(3)(A) for the
current tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “No,” complete and attach Form 4626. If “Yes,” the cooperative is not required to file Form 4626.
Form 1120-C (2023)

Page 5

Form 1120-C (2023)

Schedule L

Balance Sheets per Books
Assets

Beginning of tax year
(a)

1
2a
b
3
4
5
6
7
8a
b
9a
b
10
11a
b
12
13

Cash . . . . . . . . . . .
Trade notes and accounts receivable .
Less allowance for bad debts . . .
Inventories . . . . . . . . .
Other current assets (attach statement)
Investments (see instructions) . . .
Loans to shareholders
. . . . .
Mortgage and real estate loans
. .
Buildings and other depreciable assets
Less accumulated depreciation . .
Depletable assets . . . . . . .
Less accumulated depletion
. . .
Land (net of amortization) . . . .
Intangible assets (amortizable only) .
Less accumulated amortization
. .
Other assets (attach statement) . .
Total assets . . . . . . . . .

14
15
16
17
18
19
20

Accounts payable . . . . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) . . . .
Loans from shareholders . . . . . . . . . .
Mortgages, notes, bonds payable in 1 year or more .
Other liabilities (attach statement) . . . . . . .
Capital stock:
a Preferred stock . . . . . .
b Common stock . . . . . .
Additional paid-in capital . . . . . . . . . .
Patronage dividends allocated in noncash form . .
Per-unit retains allocated in noncash form . . . .
Retained earnings—Appropriated (attach statement)
Retained earnings—Unappropriated . . . . . .
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock . . . . . . . . .
Total liabilities and capital . . . . . . . . .

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End of tax year

(b)

(c)

(d)

(

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(

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(

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(

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(

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(

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(

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(

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Liabilities and Capital

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22
23
24
25
26
27
28

Schedule M-1
1
2
3
4

(

7

Income recorded on books this year
not included in this tax return (itemize):
Tax-exempt interest $

8

Deductions in this tax return not charged
against book income this year (itemize):
a Depreciation . . . . $
b Charitable contributions $

5

Expenses recorded on books this year
not deducted in this return (itemize):
$
a Depreciation . . .
b Charitable contributions $
c Travel and entertainment $
Add lines 1 through 5 .

Schedule M-2
1
2
3

4

(

)

Reconciliation of Income (Loss) per Books With Income per Return
Note: The cooperative may be required to file Schedule M-3. See instructions.

Net income (loss) per books . . . .
Federal income tax per books . . .
Excess of capital losses over capital gains
Income subject to tax not recorded on
books this year (itemize):

6

)

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9
10

Add lines 7 and 8 . . . . . . .
Income (page 1, line 25a)—line 6 less line 9

Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25)

Balance at beginning of year
Net income (loss) per books .
Other increases (itemize):

Add lines 1, 2, and 3 .

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5

6
7
8

a Cash . . . . .
b Stock . . . . .
c Property . . . .
Other decreases (itemize):
Add lines 5 and 6 . . . . . . .
Balance at end of year (line 4 less line 7)
Distributions:

Form 1120-C (2023)