Ag Processing, Inc a cooperative and Subsidiaries v. Commissioner

153 T.C. No. 3

UNITED STATES TAX COURT AG PROCESSING, INC. A COOPERATIVE AND SUBSIDIARIES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 23479-14. Filed October 16, 2019. P is a nonexempt cooperative subject to the rules under I.R.C. secs. 1381 through 1388 (subch. T). During its taxable years 2006 through 2009 P made payments to its members for products that it processed and marketed for the members. The amounts of the payments were fixed without reference to P’s net earnings pursuant to an agreement between P and each member. P received similar payments from a…