Estimated Tax Penalty Waived for Farmers and Fisherman for Returns Filed by April 15 (IR-2019-24; Notice 2019-17)

The IRS will waive the estimated tax penalty for any qualifying farmer or fisherman who files their 2018 federal income tax return and pays any tax due by Monday, April 15, 2019. The deadline is Wednesday, April 17, 2019, for taxpayers residing in Maine or Massachusetts.

Background

Qualifying farmers and fishermen are subject to special rules requiring them to make only one installment payment of estimated income tax due on January 15 of the year following the tax year. However, farmers and fishermen who chose to forgo their quarterly estimated tax payments for 2018 generally must file their 2018 federal return and pay any tax due by Friday, March 1, 2019. The rule applies if farming or fishing income was at least two-thirds of the total gross income in either 2018 or the preceding tax year.

Relief Provided

The IRS is providing this relief because, due to certain rule changes, many farmers and fishermen may have difficulty accurately determining their tax liability by the March 1 deadline that usually applies to them. For 2018, an individual who received at least two-thirds of his or her total gross income from farming or fishing during either 2017 or 2018 qualifies as a farmer or fisherman.

Waiver of Underpayment of Estimated Income Tax

– Farmers and fishermen requesting this waiver of the addition to tax must attach Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to their 2018 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, and the waiver box (Part I, Box A) should be checked. The rest of the form should be left blank.

– Forms, instructions, and other tax assistance are available on IRS.gov. The IRS toll-free number for general tax questions is 1-800-829-1040.

IR-2019-24Notice 2019-17

Other References:

Code Sec. 6654

CCH Reference – 2019FED ¶39,560.895

Tax Research Consultant

CCH Reference – TRC FILEIND: 21,052.20

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup