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General Instructions

Keep a copy of the completed application form in your permanent records.

A. Who May Use This Form

Form 1028 may be used by a farmers' cooperative to apply for recognition of exempt status under section 521. A farmers' cooperative, as defined in section 521, is an association of farmers, fruit growers, or persons with similar occupations that is organized and operated on a cooperative basis.

Make sure the application is complete. Remember to...
1. Complete all parts of the application.
2. Show the employer identification number (EIN):
  a. If the organization has one, put it on line 1b.
  b. If the organization doesn't have an EIN, you must apply for one (see the Specific Instructions for Part I, line 1b).
3. Enclose financial statements (see the Specific Instructions for Part IV):
  a. Current year (must include the period that is within 60 days of the application's filing date) and 3 preceding years.
  b. Detailed breakdown of receipts and expenditures — no lump sums.
4. Include a conformed copy of the complete organizing instrument and a copy of the bylaws.
  a. An organizing instrument means:
    1) Articles of incorporation
      a) Signed by the incorporators, and
      b) Signed by an appropriate government official, or
    2) Constitution of articles of association (signed).
  b. A conformed copy is one that agrees with the original and all amendments to it.
5. Enclose Form 8718 and appropriate user fee (see General Instruction F).
6. Have the application signed by one of the following:
  a. An officer,
  b. A director, or
  c. A person having power of attorney (submit the power of attorney too).
7. Give the name and phone number of someone we can call during normal business hours if we need additional information (Part I, line 3).

B. Where To File

Send the completed application, all required information, and Form 8718, User Fee for Exempt Organization Determination Letter Request, with the appropriate user's fee, to the address shown in the Instructions to Form 8718. Soon after we receive the application, you will be advised of the Internal Revenue Service's determination and of the annual returns that the organization will be required to file.

C. Power of Attorney

If an agent or attorney will represent the organization, you must file a power of attorney, specifically authorizing the representative to act in person or by correspondence. Send the power of attorney with the application when you file it. Use Form 2848, Power of Attorney and Declaration of Representative, or Form 8821,Tax Information Authorization, for this purpose.

D. Attachments

Every attachment should state that it relates to Form 1028 and identify the applicable part and line item number. The attachments should also show the organization's name, address, and employer identification number (EIN), and be on 8½'' x 11'' paper.

In addition to the required documents and statements, include any additional information citing court decisions, rulings, opinions, etc., that may help to speed the processing of the application. Generally, attachments in the form of tape recordings are not accepted unless accompanied by a transcript.

E. Annual Return

An organization that is recognized as exempt from income tax under section 521 must file an annual return on Form 1120-C, U.S. Income Tax Return for Cooperative Associations. An organization will not be considered exempt, even though it operates within the provisions of sections 521 and 1381 through 1388, unless it files this application or has previously received a ruling recognizing its exemption under section 521 of the Internal Revenue Code of 1986 or corresponding provisions of prior law.

F. User Fees for Exempt Organization Ruling and Determination Requests

The Internal Revenue Service is required to collect a fee from any organization seeking an IRS determination of its exempt status as an organization described in section 521. A fee also applies to any exempt organization's request for a private letter ruling.

The nonrefundable fee must be submitted with the application or ruling request. Otherwise, the request will be returned without any action being taken on it.

The fees are shown in Form 8718, which is used to transmit both the appropriate fee and the application or ruling request. User fees are subject to change. Check our website at and type “User Fee” in the keyword box, or call Customer Account Services at 1-877-829-5500 for current information.

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