IRS Code section 1381 requires
subchapter T cooperatives to file returns. Previously, farmers'
cooperatives filed Form 990-C and other subchapter T cooperatives
filed Form 1120. If the subchapter T cooperative does not meet
certain requirements, the due date of their return is two and
one-half months after the end of their tax year which is the same
as the due date for all other corporations. The due date for income
tax returns filed by subchapter T cooperatives who meet certain
requirements is eight and one-half months after the end of their
tax year. Cooperatives who filed their income tax returns on Form
1120 were considered to be late and penalties were assessed since
they had not filed by the normal due date for Form 1120. Due to the
assessment of the penalties, burden was placed on the taxpayer and
on the IRS employees to resolve the issue. Proposed regulations
(Reg-149436-04) published in the Federal Register (71 FR 43811),
proposes that all subchapter T cooperatives will file Form 1120-C,
U.S. Income Tax Return for Cooperative Associations.
US Code:
26
USC 1381 Name of Law: Organizations to which part applies
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.