Section 199 Update – Amended Returns
By: Gardiner Thomsen CPAs | email
So far, there have been several private letter rulings dealing with section 199. These rulings have been issued on pooling cooperatives, although a thorough review of the facts indicates that all of the cooperatives involved have been conducting their business like non-pooling marketing cooperatives and are pooling cooperatives in name only.
Currently – there are 2 private letter rulings still pending before the IRS, requested by non-pooling marketing cooperatives. We are keeping an eye on these as they make their way through the long process and will report on these as soon as they are issued.
Because the IRS issued the critical ILM regarding section 199, several years after the implementation of section 199, there are open tax years which may be eligible for filing amended returns. While we feel that the IRS will eventually allow amended returns claiming the higher section 199 deduction to be filed, we are not certain that this is currently the case.
Therefore, we are starting the information gathering process to file protective amended return claims for those cooperatives with a tax year ending December 31, 2005 and January 31, 2006. These cooperatives will lose their ability to file amended returns on September 15, 2009 and October 15, 2009 respectively.
If your cooperative has a December 31 or January 31 year end, you will be contacted soon to discuss these amended return filings.
