Due Date Farmers

[bekzm]

The due date for a farmer is March 1, to avoid penalty if nothing has been paid. But the original due date if paid is April 15 - correct? But there is a disagreement when a SEP plan to put into there plan is. We say - April 15 but the due date of a farmer BUT the bank is saying no - March 1 and needs it now? So can anyone enlighten on this subject? IRS did not even know the answer to that after 2 hrs and several transfers...lol - 1st mistake to call them but speaker phones are nice to work with at that time.
So what is the official date for a SEP for a farmer....
Thanks

[JohnH]

Not sure if it's different for farmers, although I'm pretty sure it's Apr 15 and the bank is wrong.- maybe someone else can help. But why not file an extension and take Mar 1 AND Apr 15 off the table with respect to the SEP? I think somebody is confusing the relatively minor point of Mar 1 for avoinding the estimated tax penalty with the Apr 15 regular tax filing deadline - one really doesn't have ahythign to do with the other as far as the SEP rules are concerned.

You could also tell the bank you're going to set up the plan with another bank if they don't get their info correct, which I'd probably do anyhow just because they won't do their job.

[Acownt4it]

Farmers

To avoid estimated tax penalties, Farmers and Fishermen have to file by March 1. TTB Deluxe pg. 15-3.
Farmers and fishermen. Only one estimated payment is required
if two-thirds of the taxpayer’s gross income for 2007 or
2008 is from farming or fishing. The due date of the estimated
payment for tax year 2008 is January 15, 2009, and the required
payment is two-thirds of the tax liability for the year. Due dates
for the first three installments do not apply. Exception: No estimated
payment is required if the 2008 tax return is filed and the
balance due paid by March 1, 2009. See Farmers, Tab 5, for more
information about farmers and fishermen.

[gman]

March 2

for 2009, Because March 1st falls on Saturday. right??

[JohnH]

My point was that you are getting hung up on the Mar 1 date for estimated tax penalty when it has nothing to do with the SEP deadline. Furthermore, unless the farmer owes a huge estimated tax payment, the penalty is a small matter. This is especially true when compared to the importance of getting the SEP correct. Sometimes it's easy to get side-tracked on the minor details, especially when dealing with an uninformed banker on a related matter.

On the other hand, if the SEP contribution doesn't make much difference, then the estimated tax penalty won't be much of an issue either.

[DixieEA]

Sep

I agree with JohnH. I have a farmer that has beem making a Sep contribution for years
after March 1 and has never had a problem.


DixieEA

[Burke]

Sometimes it's easy to get side-tracked on the minor details, especially when dealing with an uninformed banker on a related matter..

My pet peeve: uniformed bankers. You would not believe what they tell people regarding taxes. I have a list a mile long.