The following notice is required by the Internal Revenue Code. It does NOT change the fact that the Co-op distributes patronage refunds by issuing checks to it’s members. Please be advised that by becoming a member of the cooperative, you are consenting, pursuant to the Internal Revenue Code, to the following:
THAT THE AMOUNT OF ANY DISTRIBUTIONS TO YOU FROM THE COOPERATIVE WITH RESPECT TO YOUR PATRONAGE OCCURIRING AFTER RECEIVING THIS NOTICE AND A COPY OF THE ABOVE NOTED BYLAW WHICH ARE MADE IN THE FORM OF “WRITTEN NOTICES OF ALLOCATION”(AS DEFINED IN 26 USC1388, SEE BELOW) WILL BE TAKEN INTO ACCOUNT BY YOU AT THIER STATED DOLLAR AMOUNTS IN THE MANNER PROVIDED IN 36 USC S 1385 (A) IN THE TAXABLE YEAR IN WHICH SUCH WRITTEN NOTICES OF ALLOCATION ARE RECEIVED BY YOU.
Please note that as a matter of practice the Cooperative does not distribute Written Notices of Allocation to you to indicate your allocation of a “stated dollar amount” and patronage refund. Instead we issue checks, vouchers, or in store credit which constitute your actual patronage refund.
However, should we ever distribute Written Notices of Allocation intentionally, or inadvertently as may be determined by the IRS, the above notice, and yo0ur consent will allow the cooperative and you to treat the Written Notice of Allocation for tax purposes in the same manner as we each currently treat the checks distributed as patronage refunds, subject (as always) to a change in the law.