Neb. Admin. Code § 316-24-005 — Cooperative Organizations

005.01 In general. Any corporation or other entity organized as a cooperative under the Internal Revenue Code, which has federal taxable income derived from sources within Nebraska shall be subject to the Nebraska income tax if it is exercising its franchise within Nebraska. Additionally, if such cooperative is engaged exclusively in interstate or foreign commerce and has part of its federal taxable income derived from sources within Nebraska or has activities carried on within Nebraska, it shall be subject to the Nebraska income tax. 005.02 Computation of taxable income. For tax years beginning January 1, 1977, and thereafter, the cooperative taxable income base for Nebraska purposes shall be the federal taxable income derived from sources within this state. For tax years beginning after December 31, 1973, and before January 1, 1977, the cooperative taxable income base for Nebraska purposes shall be the entire net income derived from all sources within this state, including distributions of earnings and profits of the cooperative to members or patrons such as dividends paid on capital stock, nonpatronage income allocated to patrons, or patronage dividends attributable to this state as shall be excludable or deductible by such corporation for federal income tax purposes. The cooperative is allowed to deduct from the taxable income base such current distributions that are paid in money. However, this deduction does not include the redemption of prior year‘s distributions that were not paid in money such as qualified and nonqualified written notices of allocation. 005.03 Tax return filing requirements. Cooperative organizations shall report their income tax liability on Form 1120N. 005.03A The due date of the return is the same as the due date for the federal income tax return. 005.03B The cooperative organization shall pay the entire amount of tax on or before the prescribed due date, without regard to any extension granted for filing the return. 005.03C A cooperative organization is entitled to extensions of time to file the return the same as any other corporation. See Reg-24-007 covering extensions of time to file a corporate return. (Section 77-2734.03, R.S.Supp., 1984. December 4, 1984.)