The Internal Revenue Service is granting farmers and fisherman until April 15th to file their tax returns and pay any tax due for the year 2012 in lieu of the March 1 deadline to file and pay in full.
"Farmers don't have to make estimated tax payments if they file by March 1," explains Joe Kristan, CPA. "If they can't do that, the IRS can impose estimated tax penalties on the whole balance due."
The normal March 1st deadline has been pushed back to April 15, 2013, which is also the deadline for filing tax returns for the year 2012. Farmers and fisherman who normally wait to pay their tax in full by March 1 can now file and pay by April 15th under a new penalty waiver provided by the IRS.
The IRS announced, "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." (IR-2013-7)
The later deadline is a result of the late passage of the American Taxpayer Relief Act, which passed Congress on January 1, 2013, and made several tax changes retroactive for 2012. That legislation impacts "several tax forms that are often filed by farmers and fishermen, including the Form 4562, Depreciation and Amortization. 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 IRS points out that this "penalty relief applies to all farmers and fishermen, not only those who must file late released forms."
"To take advantage of the extended due date, the farmer will file out form 2210-F (which they normally already [do] when filing on March 1) and check the waiver box and attach it to the tax return. Nothing else will be required," explains Paul Neiffer, CPA.
- IR-2013-7, IRS Provides Penalty Relief to Farmers and Fishermen
- Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen
- Instructions for Form 2210-F
- Publication 225, Farmer's Tax Guide