Objective

This document will explain what a pass through credit is, how calculate the credit(s) and how the credit(s) is reported on the 1099-PATR form.

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Pass Through Credits

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• Alternative Minimum Tax (AMT) 1099-PATR Box 12

• Low Sulfur Diesel Tax 1099-PATR Box 12

• Small Ethanol Producer 1099-PATR Box 12

• Indian Employment 1099-PATR Box 12

• Small Refiner Coops

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  1099-PATR Box 12

• Qualified Production Activities (also called DPAD) 1099-PATR Box 6

• Small Agri-Biodiesel Producer. 1099-PATR Box 12

The system doesn't make a transaction for the pass through credits so it is important to keep a copy of the report that is generated. This will be important if you have to reprint a 1099 for a patron for a prior year. The system does holds the information until the option to Clear All Totals is performed.
For this discussion we will look at Alternative Minimum Tax and Qualified Production Activities. The pass through credits can be calculated by the system or imported. First we will discuss how the system calculates the credit.
Before allocating any pass through credits be sure and clear all totals. This only needs to be done once per 1099 reporting period. To do this go to Patronage and select 1099 Reporting and then select the menu option Pass Through Credits. The following screen will appear.
Select Option 1 – Clear All Totals.
Then Select the menu option to wipe that total out.
Illustration 1

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