The handling of distributions from cooperatives and corporations is relatively clear-cut and certain, although occasionally problems arise. But distributions from value-added cooperatives are a somewhat different matter where a farmer typically plays a dual role as investor and as a supplier of needed raw materials. A 2002 Tax Court case has cast additional light on one aspect of that area of increasing importance to farm taxpayers, liability for self-employment tax on distributions.
Harl, Neil E.
"Distributions from Value-Added Cooperatives,"
Agricultural Law Digest: Vol. 13
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol13/iss8/1