Electric distribution cooperative to surrender tax-exempt status 

October 15:  The IRS publicly released a letter ruling to an electric distribution cooperative in which the IRS stated that the cooperative can surrender its tax-exempt status under section 501(c)(12) and operate as a taxable cooperative with the filing of a final Form 990 return.  PLR 201241012 (released October 12, 2012, and dated July 19, 2012)

Text of the ruling letter: PLR 201241012 [PDF 316 KB]


Because of significant economic growth in its service area, the cooperative (which has operated as tax-exempt under section 501(c)(12)) seeks to terminate its tax-exempt status in order to obtain needed financing for expansion. The IRS letter ruling directs the cooperative to surrender its tax-exempt status via the filing of a final Form 990.



For more information, contact KPMG’s National Director of Cooperative Tax Services:


David Antoni, in Philadelphia

(267) 256-1627


Or Associate National Director of KPMG’s Cooperative Tax Services


Brett Huston, in Sacramento


(916) 554-1654




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