BIT Cooperative uses Social Security number information for the purpose of reporting capital credits allocations and payout information to the Internal Revenue Service as required by law.
As an Internal Revenue Service approved non-profit Cooperative, Buggs Island Telephone Cooperative allocates our annual operating margins (profits) to members (patrons or subscribers) receiving service during the year. These margins (revenue in excess of expenses) are allocated using a proportional ratio (using dollar amount of telephone service that each member purchases in a year compared to the total telephone service purchased by all members) and are called “Capital Credits”. That Capital is used by Buggs Island Telephone Cooperative before being paid to our members as the financial condition of the Cooperative permits and as Cooperative by-law provisions and financial obligations are met.
Capital Credits start to accrue under my membership as of December 31st of the year in which my Social Security number was provided to the Cooperative in writing.
Buggs Island Telephone Cooperative respects the privacy of every subscriber and abides by all Federal, State and Cooperative laws and rules.