Article Posted on 10/30/2018
WILL THE IRS BE READY TO RECEIVE FARMER SCHEDULE F TAX RETURNS IN TIME?
If you are a non-incorporated farmer the IRS gives you a break. You don’t have to pay estimated taxes as long as you file by March 1. Apparently, the IRS does not think you will know your tax situation until after harvest. You can make one payment on January 15, 2019 for the 2018 tax year. The required payment is the lesser of:
- 2/3rd of this year’s estimated tax liability, or
- 100% of last year’s tax owed
Because of the major tax changes made by the new tax bill it is highly unlikely that the IRS will have their computer programs updated to allow for filing of most farmer’s tax returns much before the middle of February and it may even be later than that. Also, our ability to accurately prepare your tax return and file by March 1 may not be realistic.
Who knows how the IRS will handle this. If you are doing pretax planning you might want to consider making an estimate on January 15th just to be sure that you can avoid underpayment penalties should the IRS be slow in getting their programs ready.