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**In the
planning letter MGP Coop anticipated an 8 cent deferred patronage
dividend. A patronage dividend is limited to the amount of net
patronage earnings within the COOP. In the course of finalizing the
Coop tax return, it was established that net patronage earnings were
less than expected and the 8 cent deferred patronage dividend could
not be passed through to the shareholders based on these income
limitations. Therefore Box 1 of shareholder 1099’s reflects the
cash amount paid plus 3 cents of deferred patronage. The balance of
the non-cash portion is designated in the Coop books as unpaid
written allocations and will not be taxable to each member until the
amount is paid in cash to the member. The 1099-PATR received from
the Coop is correct and should be reported on the return as such.
If you have questions about the AMT allocation or production
deduction allocations please consult your tax preparer.**
MGP Coop is invested in (2) Global
Ethanol LLC operating plants located in Lakota, Iowa and Riga,
Michigan and the corporate office of Global Ethanol LLC located at
400 South Fourth Street, Suite 1000, Minneapolis, Minnesota, 55415,
The Global Ethanol LLC phone number (612) 333-4000.
The Lakota, Iowa plant produces 100 million gallons of ethanol per
year and is located in a developing energy park that continues to seek
synergistic businesses. The Global Ethanol LLC plant is located at
1660 428th Street, Lakota, IA, 50451. Their phone number is
(515) 886-2222. Please send correspondence to MGP Cooperative, P.O.
Box 1836, Mason City, Iowa 50401. MGP Coop can be contacted by email
at
info@mgpethanol.com.
The Riga, Michigan location, originally organized by Great Lakes
Ethanol, LLC produces 57 million gallons of ethanol per year and plans
to capture CO2 as a by product. The Global Ethanol LLC
plant address is 7025 Silberhorn Hwy, Blissfield, MI. Their mailing
address is P.O. Box 12, Riga, MI, 49276. The plant phone number is
(517) 486-6190. Great Lakes Ethanol LLC investor group office phone
number is (517) 486-2302. The Great Lakes Ethanol LLC investor group
can be contacted by email at
info@greatlakesethanol.com.. |
