§1381 — Organizations to which part applies

40 citing cases

Statute Text — 26 U.S.C. §1381

(a)In general

This part shall apply to—

(1)

any organization exempt from tax under section 521 (relating to exemption of farmers’ cooperatives from tax), and

(2)

any corporation operating on a cooperative basis other than an organization—

(A)

which is exempt from tax under this chapter,

(B)

which is subject to the provisions of—

(i)

part II of subchapter H (relating to mutual savings banks, etc.), or

(ii)

subchapter L (relating to insurance companies), or

(C)

which is engaged in furnishing electric energy, or providing telephone service, to persons in rural areas.

(b)Tax on certain farmers’ cooperatives

An organization described in subsection (a)(1) shall be subject to the tax imposed by section 11.

(c)Cross reference

For treatment of income from load loss transactions of organizations described in subsection (a)(2)(C), see section 501(c)(12)(H).

Treasury Regulations

Treas. Reg. §1.1381-1Organizations to which part applies Show full text ▾ Collapse ▴

(a) In general. Except as provided in paragraph (b) of this section, part I, subchapter T, chapter 1 of the Code, applies to any corporation operating on a cooperative basis and allocating amounts to patrons on the basis of the business done with or for such patrons.

(b) Exceptions. Part I of such subchapter T does not apply to:

(1) Any organization which is exempt from income taxes under chapter 1 of the Code (other than an exempt farmers' cooperative described in section 521);

(2) Any organization which is subject to the provisions of part II (section 591 and following), subchapter H, chapter 1 of the Code (relating to mutual savings banks, etc.);

(3) Any organization which is subject to the provisions of subchapter L (section 801 and following), chapter 1 of the Code (relating to insurance companies); or

(4) Any organization which is engaged in generating, transmitting, or otherwise furnishing electric energy, or which provides telephone service, to persons in rural areas. The terms rural areas and telephone service shall have the meaning assigned to them in section 5 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 924).
Treas. Reg. §1.1381-1(a)In general. Show full text ▾ Collapse ▴

In general. Except as provided in paragraph (b) of this section, part I, subchapter T, chapter 1 of the Code, applies to any corporation operating on a cooperative basis and allocating amounts to patrons on the basis of the business done with or for such patrons.
Treas. Reg. §1.1381-1(b)Exceptions. Show full text ▾ Collapse ▴

Exceptions. Part I of such subchapter T does not apply to:

(1) Any organization which is exempt from income taxes under chapter 1 of the Code (other than an exempt farmers' cooperative described in section 521);

(2) Any organization which is subject to the provisions of part II (section 591 and following), subchapter H, chapter 1 of the Code (relating to mutual savings banks, etc.);

(3) Any organization which is subject to the provisions of subchapter L (section 801 and following), chapter 1 of the Code (relating to insurance companies); or

(4) Any organization which is engaged in generating, transmitting, or otherwise furnishing electric energy, or which provides telephone service, to persons in rural areas. The terms rural areas and telephone service shall have the meaning assigned to them in section 5 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 924).
Treas. Reg. §1.1381-2Tax on certain farmers' cooperatives Show full text ▾ Collapse ▴

(a) In general. (1) For taxable years beginning after December 31, 1962, farmers', fruit growers', or like associations, organized and operated in compliance with the requirements of section 521 and § 1.521-1, shall be subject to the taxes imposed by section 11 or section 1201. Although such associations are subject to both normal tax and surtax, as in the case of corporations generally, certain special deductions are provided for them in section 1382(c) and § 1.1382-3. For the purpose of any law which refers to organizations exempt from income taxes such an association shall, however, be considered as an organization exempt under section 501. Thus, the provisions of section 243, providing a credit for dividends received from a domestic corporation subject to taxation, are not applicable to dividends received from a cooperative association organized and operated in compliance with the requirements of section 521 and § 1.521-1. The provisions of section 1501, relating to consolidated returns, are likewise not applicable.

(2) Rules governing the manner in which amounts paid as patronage dividends are allowable as deductions in computing the taxable income of such an association are set forth in section 1382(b) and § 1.1382-2. For the tax treatment, as to patrons, of amounts received during the taxable year as patronage dividends, see section 1385 and the regulations thereunder.

(b) Cross references. For tax treatment of exempt cooperative associations for taxable years beginning before January 1, 1963, or for taxable years beginning after December 31, 1962, with respect to payments attributable to patronage occurring during taxable years beginning before January 1, 1963, see section 522 and the regulations thereunder. For requirements of annual returns by such associations, see sections 6012 and 6072(d) and paragraph (f) of § 1.6012-2.
Treas. Reg. §1.1381-2(a)In general. Show full text ▾ Collapse ▴

In general. (1) For taxable years beginning after December 31, 1962, farmers', fruit growers', or like associations, organized and operated in compliance with the requirements of section 521 and § 1.521-1, shall be subject to the taxes imposed by section 11 or section 1201. Although such associations are subject to both normal tax and surtax, as in the case of corporations generally, certain special deductions are provided for them in section 1382(c) and § 1.1382-3. For the purpose of any law which refers to organizations exempt from income taxes such an association shall, however, be considered as an organization exempt under section 501. Thus, the provisions of section 243, providing a credit for dividends received from a domestic corporation subject to taxation, are not applicable to dividends received from a cooperative association organized and operated in compliance with the requirements of section 521 and § 1.521-1. The provisions of section 1501, relating to consolidated returns, are likewise not applicable.

(2) Rules governing the manner in which amounts paid as patronage dividends are allowable as deductions in computing the taxable income of such an association are set forth in section 1382(b) and § 1.1382-2. For the tax treatment, as to patrons, of amounts received during the taxable year as patronage dividends, see section 1385 and the regulations thereunder.
Treas. Reg. §1.1381-2(b)Cross references. Show full text ▾ Collapse ▴

Cross references. For tax treatment of exempt cooperative associations for taxable years beginning before January 1, 1963, or for taxable years beginning after December 31, 1962, with respect to payments attributable to patronage occurring during taxable years beginning before January 1, 1963, see section 522 and the regulations thereunder. For requirements of annual returns by such associations, see sections 6012 and 6072(d) and paragraph (f) of § 1.6012-2.

40 Citing Cases

Affiliated Foods, Inc., a Corporation, Petitioner 128 T.C. No. 7 · 2007

Introduction Section 1382 addresses the taxable income of cooperatives, such as petitioner, to which section 1381 applies (individually, .a subchapter T cooperative) .

Affiliated Foods, Inc. v. Commissioner 128 T.C. 62 · 2007

Introduction Section 1382 addresses the taxable income of cooperatives, such as petitioner, to which section 1381 applies (individually, a subchapter T cooperative).

Thwaites Terrace House Owners Corp., Petitioner T.C. Memo. 1996-406 · 1996

Background The issue for decision is whether petitioner, a section 216 cooperative housing corporation, is a cooperative under subchapter T (sections 13813-1388), as petitioner contends, or 3 Section 1381 provides in part: SEC.

Certified Grocers of California, Ltd. v. Commissioner 88 T.C. 238 · 1987

Farmers Cooperative Co. v. Commissioner 85 T.C. 601 · 1985

Lamesa Cooperative Gin v. Commissioner 78 T.C. 894 · 1982

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Trustees of the Plumbers & Pipefitters National Pension Fund v. Plumbing Services, Inc. 791 F.3d 436 · Cir.

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Lora Liskowitz v. Michael Astrue · Cir.

Pension Benefit Guaranty Corp. v. Findlay Indus., Inc. 902 F.3d 597 · Cir.

Sun Capital Partners III, LP v. New England Teamsters & Trucki 943 F.3d 49 · Cir.

United States v. Vaello-Madero 956 F.3d 12 · Cir.

Sofco Erectors, Inc. v. Trustees of the Ohio Operating Eng'rs Pension Fund 15 F.4th 407 · Cir.

Central States, Southeast & Southwest Areas Pension Fund v. Scofbp, LLC 668 F.3d 873 · Cir.

Central States, Southeast and Southwest Areas Pension Fund, a Pension Trust, and Howard McDougall Trustee v. Gary L. White and Inge T. White 258 F.3d 636 · Cir.

The Pittston Company Buffalo Mining Company Clinchfield Coal Company Eastern Coal Corporation Elkay Mining Company Jewell Ridge Coal Corporation Kentland-Elkhorn Coal Corporation Meadow River Coal Company Pittston Coal Group Ranger Fuel Corporation v. United States of America, & Third Party v. Michael H. Holland, Trustee of the United Mine Workers of America Combined Benefit Fund United Mine Workers of America Combined Benefit Plan Elliot A. Segal, Trustee of the United Mine Workers of America Combined Benefit Fund William P. Hobgood, Trustee of the United Mine Workers of America Combined Benefit Fund Marty D. Hudson, Trustee of the United Mine Workers of America Combined Benefit Fund Thomas O.S. Rand, Trustee of the United Mine Workers of America Combined Benefit Fund Gail R. Wilensky, Trustee of the United Mine Workers of America Combined Benefit Fund Carl E. Van Horn, Trustee of the United Mine Workers of America Combined Benefit Fund Carlton R. Sickles, Trustee of the United Mine Workers of America Combined Benefit Fund, Third Party the Bituminous Coal Operators' Association, Incorporated, Intervenor, and International Union, United Mine Workers of America, Party in Interest. The Pittston Company Buffalo Mining Company Clinchfield Coal Company Eastern Coal Corporation Elkay Mining Company Jewell Ridge Coal Corporation Kentland-Elkhorn Coal Corporation Meadow River Coal Company Pittston Coal Group Ranger Fuel Corporation v. United States of America, & Third Party v. Michael H. Holland, Trustee of the United Mine Workers of America Combined Benefit Fund United Mine Workers of America Combined Benefit Plan Elliot A. Segal, Trustee of the United Mine Workers of America Combined Benefit Fund William P. Hobgood, Trustee of the United Mine Workers of America Combined Benefit Fund Marty D. Hudson, Trustee of the United Mine Workers of America Combined Benefit Fund Thomas O.S. Rand, Trustee of the United Mine Workers of America Combined Benefit Fund Gail R. Wilensky, Trustee of the United Mine Workers of America Combined Benefit Fund Carl E. Van Horn, Trustee of the United Mine Workers of America Combined Benefit Fund Carlton R. Sickles, Trustee of the United Mine Workers of America Combined Benefit Fund, Third Party the Bituminous Coal Operators' Association, Incorporated, Intervenor, and International Union, United Mine Workers of America, Party in Interest. The Pittston Company Buffalo Mining Company Clinchfield Coal Company Eastern Coal Corporation Elkay Mining Company Jewell Ridge Coal Corporation Kentland-Elkhorn Coal Corporation Meadow River Coal Company Pittston Coal Group Ranger Fuel Corporation v. United States of America, & Third Party v. Michael H. Holland, Trustee of the United Mine Workers of America Combined Benefit Fund United Mine Workers of America Combined Benefit Plan Elliot A. Segal, Trustee of the United Mine Workers of America Combined Benefit Fund William P. Hobgood, 4 Trustee of the United Mine Workers of America Combined Benefit Fund Marty D. Hudson, Trustee of the United Mine Workers of America Combined Benefit Fund Thomas O.S. Rand, Trustee of the United Mine Workers of America Combined Benefit Fund Gail R. Wilensky, Trustee of the United Mine Workers of America Combined Benefit Fund Carl E. Van Horn, Trustee of the United Mine Workers of America Combined Benefit Fund Carlton R. Sickles, Trustee of the United Mine Workers of America Combined Benefit Fund, Third Party and the Bituminous Coal Operators' Association, Incorporated International Union, United Mine Workers of America, Parties in Interest. The Pittston Company Buffalo Mining Company Clinchfield Coal Company Eastern Coal Corporation Elkay Mining Company Jewell Ridge Coal Corporation Kentland-Elkhorn Coal Corporation Meadow River Coal Company Pittston Coal Group Ranger Fuel Corporation v. United States of America, & Third Party Michael H. Holland, Trustee of the United Mine Workers of America Combined Benefit Fund United Mine Workers of America Combined Benefit Plan Elliot A. Segal, Trustee of the United Mine Workers of America Combined Benefit Fund William P. Hobgood, Trustee of the United Mine Workers of America Combined Benefit Fund Marty D. Hudson, Trustee of the United Mine Workers of America Combined Benefit Fund Thomas O.S. Rand, Trustee of the 6 United Mine Workers of America Combined Benefit Fund Gail R. Wilensky, Trustee of the United Mine Workers of America Combined Benefit Fund Carl E. Van Horn, Trustee of the United Mine Workers of America Combined Benefit Fund Carlton R. Sickles, Trustee of the United Mine Workers of America Combined Benefit Fund, Third Party and the Bituminous Coal Operators' Association, Incorporated International Union, United Mine Workers of America, Parties in Interest 368 F.3d 385 · Cir.

Board of Trustees of Trucking Employees of North Jersey Welfare Fund, Inc-Pension Fund v. Kero Leasing Corporation, a New Jersey Corporation Robert C. Holmes, a Proprietor, Individually, Jointly and Severally Holmes Leasing Company, a Proprietorship Robert C. Holmes v. Board of Trustees of Trucking Employees of North Jersey Welfare Fund, Inc.-Pension Fund Board of Trustees of Trucking Employees of North Jersey, Welfare Fund, Inc.-Pension Fund, Board of Trustees of Trucking Employees of North Jersey Welfare Fund, Inc-Pension Fund v. Kero Leasing Corporation, a New Jersey Corporation Robert C. Holmes, a Proprietor, Individually, Jointly and Severally Holmes Leasing Company, a Proprietorship Robert C. Holmes v. Board of Trustees of Trucking Employees of North Jersey Welfare Fund, Inc.-Pension Fund Robert C. Holmes 377 F.3d 288 · Cir.

New York State Teamsters Conference Pension And Retirement Fund v. Express Services, Inc. 426 F.3d 640 · Cir.

Terrance Berger and Donald Laxton v. Axa Network LLC and Equitable Life Assurance Society of the United States 459 F.3d 804 · Cir.

Chicago Truck Drivers, Helpers & Warehouse Workers Union (Independent) Pension Fund v. CPC Logistics, Inc. 698 F.3d 346 · Cir.

New York State Teamsters Conference Pension & Retirement Fund v. Express Services, Inc. 426 F.3d 640 · Cir.

UFCW Local One Pension Fund v. Enivel Properties, LLC 791 F.3d 369 · Cir.

§1381 — Organizations to which part applies

40 Citing Cases

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