Reg. § 1.6044-3 Amounts subject to reporting.
(a) In general Except as provided in of this section, the amounts subject to reporting under are:
(1) Payments by all organizations subject to such reporting requirements of:
(i) Patronage dividends (as defined in section ) paid in money, qualified written notices of allocation (as defined in section ), or other property (except nonqualified written notices of allocation as defined in section ); and
(ii) Amounts described in section (relating to redemption of nonqualified written notices of allocation previously paid as patronage dividends) paid in money or property (except written notices of allocation); and
(2) Payments by farmers' cooperatives exempt from tax under section of:
(i) Amounts described in section (relating to distributions with respect to earnings derived from sources other than patronage) paid in money, qualified written notices of allocation, or other property (except nonqualified written notices of allocation); and
(ii) Amounts described in section (relating to redemption of nonqualified written notices of allocation previously paid as distributions with respect to earnings derived from sources other than patronage) paid in money or other property (except written notices of allocation).
(b) Special rules
(1) If an organization makes a distribution consisting in whole or in part of a written notice of allocation and a qualified check and, at the time it files its return under , is unable to determine whether such written notice of allocation and such check constitute nonqualified written notices of allocation, such organization shall for purposes of such return treat such written notice of allocation as a qualified written notice of allocation and such qualified check as a payment in money.
(2) An amount described in of this section is subject to reporting even though the organization paying such amount is allowed no deduction for it because it was not paid within the time prescribed in section . Thus, a patronage dividend of $25 paid by a marketing cooperative must be reported even though it is paid after the end of the payment period (see section ) for the organization's taxable year in which the patronage occurred.
(c) Exceptions An amount described in of this section does not include—
(1) Any amount described in ; or
(2) With respect to amounts paid or credited after December 31, 1982, any amount paid or credited to any person described in .
(d) Determination of amount paid For purposes of and this section, in determining the amount of any payment subject to reporting under of this section:
(1) Property (other than a qualified written notice of allocation) shall be taken into account at its fair market value, and
(2) A qualified written notice of allocation shall be taken into account at its stated dollar amount.
[T.D. 6628, 27 FR 12798, Dec. 28, 1962, as amended by T.D. 8734, 62 FR 53476, Oct. 14, 1997]