U.S. Income Tax Return for Cooperative Associations OMB No. 1545-2052

Form 1120-C

© See separate Instructions. Department of the Treasury

Internal Revenue Service

For calendar year 2008 or tax year beginning , 2008, ending , 20 

A Check if: Name B

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

1 Consolidated return

(attach Form 851)

City or town, state, and ZIP code

C Check if:

Please type or print

Farmers’ tax exempt

cooperative

D Check if: Initial return (2) Final return (4) Address change

Nonexempt

cooperative

1a Gross receipts or sales b Less returns and allowances cBal © 1c

2 Cost of goods sold (Schedule A, line 9) 2

3 Gross profit. Subtract line 2 from line 1c 3

4 Dividends (Schedule C, line 19) 4

5 Interest 5

6 Gross rents and royalties 6

Income

7 7

8

Capital gain net income (attach Schedule D (Form 1120))

8

9

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)

9

10

Other income (see instructions—attach schedule)

10

11

Total income. Add lines 3 through 9 ©

11

12 12

Compensation of officers (Schedule E, line 4)

13 13

Salaries and wages (less employment credits)

14 14

15 15

Bad debts

16 16

Rents

17 17

Taxes and licenses 

18 18

Interest

19 19

Charitable contributions

20

Depreciation not claimed in Schedule A or elsewhere on return (attach Form 4562)

20

21 21

22 22

Advertising

23 23

Pension, profit-sharing, etc., plans

24 24

Employee benefit programs

26a

26

Other deductions (attach schedule)

Deductions and adjustments under section 1382

(Schedule H, line 5)

Taxable income before section 1382, NOL, and special deductions. Subtract line 24 from line 10

27

26b

29a

b Net operating loss deduction (see instructions)

Deductions (See instructions for limitations on deductions.)

c Special deductions (Schedule C, line 20) 26c 26d

Taxable income. Subtract line 26d from line 25 (see instructions) 27

Total tax (Schedule J, line 9)

2007 overpayment credited to 2008 29a

b 2008 estimated tax payments 29b

c 2008 refund applied for on Form 4466 29c ( ) d Bal © 29d

e Tax deposited with Form 7004 29e

f Credits: (1) Form 2439

29i

Tax, Refundable Credits, and Payments

31

Estimated tax penalty (see instructions). Check if Form 2220 is attached ©

31

32

Amount owed. If line 29i is smaller than the total of lines 28 and 30, enter amount owed

32

33

Overpayment. If line 29i is larger than the total of lines 28 and 30, enter amount overpaid 

33 Enter amount of line 32 you want: Credited to 2009 estimated tax © Refunded ©

Employer identification number

(1) (5) Amended return(3) Name change

25 25

Domestic production activities deduction (attach Form 8903)

2 Schedule M-3 (Form

1120) attached

Total deductions. Add lines 11 through 23 ©

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. Sign

Here

Signature of officer Date Title

Date Preparer’s SSN or PTIN Preparer’s

signature

Check if

self-employed

Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Phone no. ( )

May the IRS discuss this return with

the preparer shown below (see © instructions)? Yes No

©

©

©

(1)

(2)

(2) Form 4136

3 Form 1120 filed in 

previous tax year

29f

h Section 1383 adjustment (see instructions) 29h

28 28

30 30

Less: a

2008

g Refundable credits from Form 3800, line 19c, and Form 8827, line 8c 29g
Form 1120-C (2008) Page 2

Cost of Goods Sold (see instructions)

1 Inventory at beginning of year 1

2 Purchases 2

3 Cost of labor 3

4 Per-unit retain allocations paid in:

a Qualified per-unit retain certificates 4a

b Money or other property (except nonqualified per-unit certificates) 4b

5 Nonqualified per-unit retain certificates redeemed this year 5

6a Additional section 263A costs (attach schedule) 6a

b Other costs (attach schedule) 6b

7 Total. Add lines 1 through 6b 7

8 Inventory at end of year

9 Cost of goods sold. Subtract line 8 from line 7. Enter here and on line 2, page 1 9

10a Check all methods used for valuing closing inventory:

Cost as described in Regulations section 1.471-3

Lower of cost or market as described in Regulations section 1.471-4

Other (Specify method used and attach explanation) ©

c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ©

If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of

closing inventory computed under LIFO

d

10d

e If property is produced or acquired for resale, do the rules of section 263A apply to the cooperative? Yes No

f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? Yes No

Dividends and Special Deductions

(see instructions)

(c) Deduction

((a) 3 (b))

(a) Dividends

received (b) %

Dividends from less-than-20%-owned domestic corporations (other

than debt-financed stock)

1

70

2 Dividends from 20%-or-more-owned domestic corporations (other

than debt-financed stock) 80

See

instructions Dividends on debt-financed stock of domestic and foreign

corporations 

3

42

Dividends on certain preferred stock of less-than-20%-owned public

utilities

4

48

Dividends on certain preferred stock of 20%-or-more-owned public

utilities

5

70

Dividends from less-than-20%-owned foreign corporations and

certain FSCs

6

80

Dividends from 20%-or-more-owned foreign corporations and certain

FSCs

7

8 Dividends from wholly owned foreign subsidiaries 100

9 Total. Add lines 1 through 8. See instructions for limitation

11 Dividends from affiliated group members 

12 Dividends from certain FSCs

100

Dividends from foreign corporations not included on lines 3, 6, 7, 8,

11, or 12

13

Income from controlled foreign corporations under subpart F (attach

Form(s) 5471)

14

15 Foreign dividend gross-up 

16 IC-DISC and former DISC dividends not included on lines 1, 2, or 3 

17 Other dividends

Total dividends. Add lines 1 through 17. Enter here and on line 4,

page 1 ©

19

20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on line 26c, page 1 ©

Schedule C

Schedule A

8

(ii)

(i)

(iii)

b Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c) ©

If “Yes,” attach explanation.

Form 1120-C (2008)

100

Dividends from domestic corporations received by a small business investment 

company operating under the Small Business Investment Act of 1958

10

18 Deduction for dividends paid on certain preferred stock of public utilities

See

instructions
Form 1120-C (2008) Page 3

Compensation of Officers (See instructions for line 11, page 1.)

Complete Schedule E only if total receipts (line 1a, plus lines 4 through 9, of page 1) are $500,000 or more.

Percent of association’s

stock owned (c) Percent of

time devoted

to business

(f) Amount of

compensation (a) Name of officer (b) Social security number

(d) Common (e) Preferred

1 % % %

% % %

% % %

% % %

% % %

2 Total compensation of officers 2

3 Compensation of officers claimed on Schedule A and elsewhere on return 3

4 Subtract line 3 from line 2. Enter the result here and on line 11, page 1 4

Allocation of Patronage and Nonpatronage Income and Deductions. Before completing,

see Question 14 of Schedule K.

1 Gross receipts or sales 1

2 Cost of goods sold 2

3 Gross profit. Subtract line 2 from line 1 

Other income 

Unused patronage loss (see instructions) 

4 4

Schedule E

Schedule G

Form 1120-C (2008)

Deductions and Adjustments Under Section 1382 (see instructions)

1 Dividends paid on capital stock (section 521 cooperatives only) 1

2 Nonpatronage income allocated to patrons (section 521 cooperatives only) 2

3 Patronage dividends:

a Money 3a

b Qualified written notices of allocation 3b

c Other property (except nonqualified written notices of allocation) 3c

Money or other property (except written notices of allocation) in redemption of nonqualified

written notices of allocation

d

3d

Domestic production activities deduction allocated to patrons

5 Total. Combine lines 1 through 4. Enter here and on line 26a, page 1, and Schedule G, line 8 5

Schedule H

(a) Patronage (b) Nonpatronage

5

6a

Total income. Combine lines 3 and 4 

Total deductions (add lines 6a and 6b)

Other deductions

Domestic production activities deduction (attach Form 8903)

Taxable income before section 1382, NOL, and special deductions.

Subtract line 6c from line 5 

Net operating loss deduction (attach schedule) 

Special deductions (see instructions) 

Taxable income. Subtract the total of lines 8, 9a, and 9b from line 7 

Unused nonpatronage loss (see instructions) 

b

c

7

9a

b

8

10

12

13

3

5

6a

6b

6c

9a

9b

7

8

10

12

13

4 4

Deductions and adjustments under section 1382 from Schedule H, line 5

(see instructions) 

( )

Combined taxable income. Combine columns (a) and (b) of line 10 (see

instructions) 

11

11
Enter the amount of tax-exempt income received or 

accrued during the tax year (for example, interest or 

extraterritorial income) © $

Other Information (see instructions)

Form 1120-C (2008) Page 4

Schedule K

Form 1120-C (2008)

Tax Computation (see instructions)

Check if the cooperative is a member of a controlled group (attach Schedule O

(Form 1120)) ©

1

2 Income tax (see instructions) 2

5a Foreign tax credit (attach Form 1118) 5a

b Credit from Form 8834 5b

c 5c

6 Total credits. Add lines 5a through 5d 6

7 Subtract line 6 from line 4 7

8 Other taxes. Check if from: Form 4255 Form 8611 8

4 Add lines 2 and 3 4

9 Total tax. Add lines 7 and 8. Enter here and on line 28, page 1 9

Schedule J

3 Alternative minimum tax (attach Form 4626) 3

Form 8902

d Credit for prior year minimum tax (attach Form 8827) 5d

Other (attach schedule)

Yes No Yes No

See the instructions and enter the:

Business activity code no. ©

Business activity ©

Product or service ©

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 schedule 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.

Is the cooperative a subsidiary in an affiliated group 

or a parent-subsidiary controlled group? 

Check accounting method:

a Cash

b Accrual

c Other (specify) ©

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.

1

2

5

7

9

10

a

b

c

Enter the number of foreign patrons at the end of the 

tax year ©

11a

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 ©

13

4

If the cooperative has an NOL for the tax year and is electing 

to forego the carryback period, check here ©

If “Yes,” attach a schedule showing name and

identifying number. (Do not include any information 

already entered in 5 above.) Enter percentage

owned ©

c

If “Yes,” enter name and EIN of the parent

corporation ©

6 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).) 

12

14

Enter the available NOL carryover from prior tax years 

(Do not reduce it by any deduction on line 26b.)

Enter the cooperative’s total assets (see

instructions) © $

If “Yes,” enter: (a) Percentage owned ©

and (b) Owner’s country ©

If the cooperative is 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.

Are the cooperative’s total receipts (line 1a plus lines 

4 through 9 on page 1) for the tax year and its total 

assets at the end of the tax year less than $250,000?

If “Yes,” the cooperative is not required to complete 

Schedules 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 

the tax year. © $

Patronage © $

Nonpatronage © $

3 Check the accounting method used to compute

distributable patronage:

Enter the total amount of patronage distributions

described in (or deducted under) IRC 1382(b) paid or 

allocated to foreign patrons ©

b

d Date of incorporation ©

a Book

b Tax

c Other (specify) ©

Enter the amount of outstanding nonqualified

notices of allocation (attach schedule) ©

15

At any time during the 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?

8

General business credit (attach Form 3800)
Balance Sheets per Books Beginning of tax year End of tax year

(a) (b) (c) (d) Assets

1 Cash

2a Trade notes and accounts receivable

b ( ) ( ) Less allowance for bad debts 

3 Inventories

4

5

Other current assets (attach schedule) 

6

Investments (see instructions) 

7

Buildings and other depreciable assets

9a

b Less accumulated depreciation ( ) ( )

Depletable assets

10

b Less accumulated depletion ( ) ( )

Land (net of amortization)

12

Intangible assets (amortizable only)

13

b Less accumulated amortization ( ) ( )

Other assets (attach schedule)

14

15

Total assets

Liabilities and Capital

Accounts payable

16

Mortgages, notes, bonds payable in less than 1 year

17

Other current liabilities (attach schedule)

18 Mortgages, notes, bonds payable in 1 year or more

20

Other liabilities (attach schedule) 

21

Capital stock:

22

a Preferred stock

b Common stock

Additional paid-in capital

23

Patronage dividends allocated in noncash form 

24

Per-unit retains allocated in noncash form

25

Retained earnings—Appropriated (attach schedule)

26

Less cost of treasury stock ( ) ( )

Total liabilities and capital

Reconciliation of Income (Loss) per Books With Income per Return

Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions

1 Net income (loss) per books 7 Income recorded on books this year

2 Federal income tax per books not included in this tax return (itemize):

3 Excess of capital losses over capital gains Tax-exempt interest $ 

Income subject to tax not recorded on

books this year (itemize):

4

5 Expenses recorded on books this year not

deducted in this return (itemize):

Deductions in this tax return not charged

against book income this year (itemize):

8

$ 

a Depreciation

a Depreciation b Charitable contributions

b Charitable contributions $ 

c Travel and entertainment $ 

9 Add lines 7 and 8

6 Add lines 1 through 5 10 Income (line 25, page 1)—line 6 less line 9

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

1 Balance at beginning of year 5 Cash

2 Net income (loss) per books b Stock

3 Other increases (itemize): c Property

6 Other decreases (itemize):

7 Add lines 5 and 6

4 Add lines 1, 2, and 3 8 Balance at end of year (line 4 less line 7)

Form 1120-C (2008) Page 5

Schedule M-2

Schedule M-1

Schedule L

28

Adjustments to shareholders’ equity (attach schedule)

Distributions: a

$ 

$ 

Form 1120-C (2008)

8a

Loans to shareholders 

Mortgage and real estate loans 

Loans from shareholders 

19

27

Retained earnings—Unappropriated 

11a