Farmers Relieved of Late Filing Penalty | Smith, Kunz & Associates

Farmers Relieved of Late Filing Penalty

December 17, 2014

Farmers can now file by April 15th without penalty

Congress inaction in passing tax laws had a domino effect on the IRS's ability to process tax returns. After the IRS announced that certain tax forms applicable to most farmers would be delayed until March, many farmers wondered how they would be able to file their returns by their unique March 1 deadline. Would they have to pay a penalty for filing late?

The IRS just announced 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. 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.

The delayed start for filing tax returns stems from the recent enactment of the American Taxpayer Relief Act (ATRA), which affected several tax forms that are often filed by farmers and fishermen, including Form 4562, Depreciation and Amortization (Including Information on Listed Property). Because these forms will equire extensive programming and testing of IRS systems, the IRS’s ability to accept and process these forms will be delayed. The IRS is providing this relief because delays in the Service’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.

Farmers and fishermen requesting this penalty waiver must attach Form 2210-F to their tax returns. 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.

For more information on Agricultural Accounting, call Smith, Kunz and Associates at (208) 356-8500. We are happy to answer any questions you have!