Tax laws now require market gain reports

Producers who have repaid a market gain on a Commodity Credit Corp. loan with cash or commodity certificates in exchange for outstanding loan collateral will now have their market gains reported to the Internal Revenue Service on Form 1099-G.

Similarly, beginning Jan. 1, 2008, cotton producers who apply storage credit to the repayment of a CCC loan also will receive an IRS Form 1099-G from the Farm Service Agency.

"Due to changes in tax laws, FSA is now required to report to the IRS all market gains associated with the repayment of a CCC loan," said Mark Tays, county executive director for the Lampasas/Burnet County FSA. Producers will receive, by mail, the amount reported by FSA to the IRS for market gains and storage credits.

Producers with questions about how reporting market gains will affect their taxes should contact a tax adviser or visit the IRS website: "Repayment of Commodity Credit Corporation Loans," irs.gov/irb/ 2007-33_IRB/ar07.html.