General Member Allocation Notice
Dear Member:
Winnebago Cooperative Telecom Association’s Board of Directors will notify members of any deferred patronage dividend amount allocated to your account this year. This is, in effect, invested in cable, digital switching, electronics and other property.
Should a member receive an allocation notice, the amount of your patronage capital is shown on the “Notice of Deferred Patronage Dividend,” statement and is based on the amount of business (service) you do with your Cooperative. The business (service) with the Cooperative (on which the allocation is based), includes monthly recurring charges for telephone service, TV service, Internet access, long distance charges and telecommunication equipment purchases. It is annually credited to your deferred dividend account on the books of the Cooperative. This is not an amount to deduct from your WCTA monthly bill.
This means, of course, that your dividend will remain invested in the Cooperative until such time sufficient funds have been accumulated, after which time, the Board may retire these accumulated credits. At this time there is no date set as to when the above dividend allocation will be refunded.
WE ARE NOT TAX ADVISORS. However, it is our understanding the proper reporting of your deferred dividend allocation is as follows: The deferred dividend allocation is not taxable until payment for the dividend is received in cash, and then only to the extent the telecommunication expenses were deducted on your income tax returns for the years the dividend was allocated.
Consult with your tax advisor if you have any questions or need additional explanation for the proper tax reporting of your deferred dividend allocation.
Please provide us with any address changes to insure mailings are sent to the correct address.
Winnebago Cooperative Telecom Association
704 E. Main St.
Lake Mills, IA 50450
Frequently Asked Questions
When do I receive an Allocation Notice?
Allocation notices will either appear on your September or October monthly bill, or sent as a separate mailing in September or October of each calendar year.
When will I receive my check?
We are currently paying out dividend checks from 1997-2000, so members that had accumulated enough capital credits during that time may receive a check from WCTA for their patronage. The board of directors may decide to retire accumulated credits from other years at a later date.
What are Allocation Notices and how are they calculated?
Allocation notices let members know what amount was allocated to their dividend account on the books of the Cooperative that was accumulated through monthly recurring charges for telephone service, TV service, internet access, long distance charges, and telecommunications equipment purchases. They are not an amount that can be deducted from a monthly bill from WCTA.