Farmers Filing Deadline

[Snaggletooth]

Is there a cite which creates the March 1 filing deadline for agricultural producers??

[Jiggers]

Is there a cite which creates the March 1 filing deadline for agricultural producers??

The March 1 deadline applies to a farmer, as defined as one with at least 2/3's of gross income from all sources is from farming (See IRS Pub 225, page 84), and doesn't pay estimated taxes.

The farmer must file by March 1 and pay the balance due. No penalty for not making quarterly estimates.

Again, see IRS Pub 225, page 84.

The farmer doesn't have to file by March 1 if quarterly estimates are made.

[TAX4US]

If according to IRS the 4562 may still be in limbo by 3-1-2013 then what happens to the Qualified farmer who files and pays by the March 1 deadline. Penalty or not. Our state follows fed on this issue so there could be more problems. Any thoughts?

[Jiggers]

If according to IRS the 4562 may still be in limbo by 3-1-2013 then what happens to the Qualified farmer who files and pays by the March 1 deadline. Penalty or not. Our state follows fed on this issue so there could be more problems. Any thoughts?

If that situation occurs, I plan on having the return ready to go, with the balance due calculated. The farmer will send in his balance due with the 1040V as he always does.

The return will be filed when it can be filed.

As long as the payment was made March 1, 2013, I don't see a problem.

Actually, I usually have the return ready to go ahead of time, 8879 signed, and e-filed before March 1. The farmer mails his balance due on March 1.

The only difference this time is that the IRS may not be ready to e-file.

[Golden Rocket]

Trade-Off

So the big trade-off for the farmers:

Upside: No estimated tax payments are necessary
Downside: Return must be filed by March 1

If the farmer doesn't want to buy into the above, then his situation is like everyone else without the
two stipulations above.

Is this correct??

[Roland Slugg]

The farmer must file by March 1 and pay the balance due. No penalty for not making quarterly estimates.

That is not correct, or at the very least it is misleading.

The filing due date for a farmer is the same as everyone else's ... April 15th. The March 1st due date is only related to a farmer's payment of estimated tax. If a farmer files his return and pays his tax by March 1st, then he doesn't need to make any estimated tax payment before that date, and he won't be liable for an underpayment penalty. If he doesn't file and pay by March 1st, then he must make an estimated tax payment by January 15th of at least 66-2/3% of his tax, in order to be safe from a possible estimated tax underpayment penalty.

The farmer doesn't have to file by March 1 if quarterly estimates are made.

That's not correct either. A farmer doesn't have to file by March 1 even if estimated tax is NOT paid. However, he may be liable for underpayment penalty if he does that. Also, a farmer needs to make only ONE estimated tax payment, by January 15th, not quarterly payments.

One other point: For the above purposes a farmer is defined as a person for whom at least 66-2/3% of gross income for the current or preceding tax year comes from farming. These sames special rules also apply to fishermen. (Code §6654(i))

[Snaggletooth]

Thanks

Thanks to these colossal minds for lending them to this post. Roland I was able to get a good glimpse of the picture from
Jiggers' information, and although his answers may not have touched all conceivable bases, it would have stretched my imagination
to concoct a situation which did not meet his relevance. Thanks for your complete portrayal and exact definitions.

[smithtax]

e-News for Tax Professionals Issue 2013-3

IRS Provides Penalty Relief to Farmers and Fishermen
--------------------------------------------------------------------------------

The Internal Revenue Service announced today that it will issue guidance in the near future to provide relief from the estimated tax penalty for farmers and fishermen unable to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns.

The delay stems from this month’s enactment of the American Taxpayer Relief Act (ATRA). The ATRA affected several tax forms that are often filed by farmers and fishermen, including the Form 4562, Depreciation and Amortization (Including Information on Listed Property). These forms will require extensive programming and testing of IRS systems, which will delay the IRS’s ability to accept and process these forms. The IRS is providing this relief because delays in the agency’s ability to accept and process these forms may affect the ability of many farmers and fishermen to file and pay their taxes by the March 1 deadline. The relief applies to all farmers and fishermen, not only those who must file late released forms.

Normally, farmers and fishermen who choose not to make quarterly estimated tax payments are not subject to a penalty if they file their returns and pay the full amount of tax due by March 1. Under the guidance to be issued, farmers or fishermen who miss the March 1 deadline will not be subject to the penalty if they file and pay by April 15, 2013. A taxpayer qualifies as a farmer or fisherman for tax-year 2012 if at least two-thirds of the taxpayer’s total gross income was from farming or fishing in either 2011 or 2012.

Farmers and fishermen requesting this penalty waiver must attach Form 2210-F to their tax return. The form can be submitted electronically or on paper. The taxpayer’s name and identifying number should be entered at the top of the form, the waiver box (Part I, Box A) should be checked, and the rest of the form should be left blank. Forms, instructions, and other tax assistance are available on IRS.gov.

[taxea]

Irs 2013-3

1. IRS Provides Penalty Relief to Farmers and Fishermen
--------------------------------------------------------------------------------

The Internal Revenue Service announced today that it will issue guidance in the near future to provide relief from the estimated tax penalty for farmers and fishermen unable to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns.

The delay stems from this month’s enactment of the American Taxpayer Relief Act (ATRA). The ATRA affected several tax forms that are often filed by farmers and fishermen, including the Form 4562, Depreciation and Amortization (Including Information on Listed Property). These forms will require extensive programming and testing of IRS systems, which will delay the IRS’s ability to accept and process these forms. The IRS is providing this relief because delays in the agency’s ability to accept and process these forms may affect the ability of many farmers and fishermen to file and pay their taxes by the March 1 deadline. The relief applies to all farmers and fishermen, not only those who must file late released forms.

Normally, farmers and fishermen who choose not to make quarterly estimated tax payments are not subject to a penalty if they file their returns and pay the full amount of tax due by March 1. Under the guidance to be issued, farmers or fishermen who miss the March 1 deadline will not be subject to the penalty if they file and pay by April 15, 2013. A taxpayer qualifies as a farmer or fisherman for tax-year 2012 if at least two-thirds of the taxpayer’s total gross income was from farming or fishing in either 2011 or 2012.

Farmers and fishermen requesting this penalty waiver must attach Form 2210-F to their tax return. The form can be submitted electronically or on paper. The taxpayer’s name and identifying number should be entered at the top of the form, the waiver box (Part I, Box A) should be checked, and the rest of the form should be left blank. Forms, instructions, and other tax assistance are available on IRS.gov

[smithtax]

Notice 2013-5

http://www.irs.gov/pub/irs-drop/n-13-05.pdf

[taxea]

Notice 2013-05 provides for the waiver of additions to tax under section 6654(a) of the Internal Revenue Code for underpayment of estimated taxes for certain farmers and fishermen due to the delayed start for filing 2012 tax year returns. The IRS issued a press release on January 18, 2013, which indicated that it will issue this guidance on this issue.

Notice 2013-05 will be published in Internal Revenue Bulletin2013-9 on February 25, 2013.