Peace River Electric Cooperative

“The organization is organized as not-for-profit corporation under the laws of the state of florida and operates as an electric distribution cooperative. It is a membership organization and all members have identical rights under the cooperative's organizational documents and the statutes of the state of florida.”

“Under the cooperative's organizing documents and the laws of the state of florida, there is only one class of membership. Any person or business within the geographic service area of the cooperative is eligible to become a member upon application and payment of the membership fee. The members vote in elections of the board of directors.”

“Changes made to the bylaws of the organization must be approved by the members of the organization.”

“Irs form 990 is reviewed by the general manager/ceo of the cooperative. Before the form 990 is filed with the irs, a copy is provided to each member of the board of directors for review.”

“Officers and directors are required to disclose any interests that could lead to a conflict of interest each year on a questionnaire provided by the cooperative. Management reviews the responses to each of the questionnaires.”

“Each year the board of directors reviews the nreca compensation study which represents compensation for 900 electric cooperatives. The board uses the data in the compensation study as well as the recommendations of an independent consultant to determine the compensation of the general manager/ceo. The final compensation is then approved by the board of directors and is documented in the minutes of the meetings of the board of directors. The ceo uses the nreca compensation survey of 900 electric cooperatives as well as the recommendations of an independent consultant to determine the compensation of officers and key employees.”

“The financial statements are included in the organization's annual report which is sent out to the membership of the organization and is also made available on the organization's website. Corporate bylaws are made available on the organization's website. Any other governing documents and the conflict of interest policy are made available upon request.”

“The filer is a category 3 filer for form 5471 purposes because it is a united states shareholder of the foreign corporation under irc 953(c). Therefore, the filer is required to complete schedule o even if it neither acquired nor disposed of stock in the foreign corporation.”

“The irs' instructions for the 2024 version of form 990, part ix, line 4 state: "enter the payments made by the organization to provide benefits to members (...patronage dividends paid by section 501(c)(12) organizations to their members)". Statement of functional expenses, line 4 is entitled "benefits paid to or for member." significant industry- wide discussions began regarding the need for the irs' clarification and whether "patronage dividends paid" means capital credits allocated, capital credits retired or some other amount. For the purposes of this form 990, the amount reported on line 4 represents the amount of 2024 capital credits allocated. This amount was approved by the board of directors during the spring of 2024.”

“Dividend allocated to cooperative from assoc coop on accrual basis 5,751,922. On cash basis -1,096,591. Margins assigned 12,657,341. Increase in other equities 288,381. Increase in membership 19,000. Capital credits retired -2,743,694. Decrease in accum. Post retirement benefits -49,601.”

“The instructions for form 5471 state that a person that is both a category 3 and category 5 filer because it is treated as a u.s. Shareholder under section 953(c)(1)(a) with respect to the foreign corporation must complete schedule b, part i for u.s persons that owned, directly or indirectly through foreign entities, any of the foreign corporation's outstanding stock. Accordingly, schedule b, part i has been completed for the applicable u.s. Shareholder listed on page 1 of this form 5471. The controlled foreign corporation for which this informational return is being filed is organized under the laws of the cayman islands and thus subject to certain data privacy laws. Accordingly, due to the cayman islands data protection act, the complete shareholder listing is available upon request from the registered office of the controlled foreign corporation. Additionally, taxpayer is a minority shareholder in the controlled foreign corporation and therefore does not have access to any of controlled foreign corporation's books and records. See regulations section 1.964-3, where records are to be maintained by 10% or more shareholders. Taxpayer owns less than 10% of the controlled foreign corporation.”

“The controlled foreign corporation for which this informational return is being filed does not participate in any cost sharing arrangements as defined in section 1.482-7(b). Schedule g-1, which reports cost sharing arrangements and is required to be attached to this return, is being filed but does not have any details provided because the controlled foreign corporation did not participate in any cost sharing arrangements during the tax year.”

“The foreign corporation filed form 1120-f, u.s. Income tax return of a foreign corporation, for its tax years ended december 30 2023, 2022, and 2021. The foreign corporation had no taxable income and no tax due on the return.”