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February 5, 2013

IRS Provides Penalty Relief to Farmers and Fishermen for Underpayment of Estimated Taxes (article)

The IRS has announced a waiver of additions to tax under Code Sec. 6654(a) for underpayment of estimated taxes for certain farmers and fishermen due to the delayed start for filing 2012 tax returns. 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.

The delayed start for filing tax returns stems from the recent enactment of the American Taxpayer Relief Act (ATRA), P.L. 112-240, 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 require extensive programming and testing of IRS systems, the IRS’s ability to accept and process these forms is 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.


Copyright © 2013, CCH INCORPORATED. All Rights Reserved. Contents of this publication may not be reproduced without the express written consent of CCH and CBIZ. To ensure compliance with requirements imposed by the IRS, we inform you that-unless specifically indicated otherwise-any tax advice in this communication (and any attachments) is not written with the intent that it be used, and in fact it cannot be used, to avoid penalties under the Internal Revenue Code, or to promote, market, or recommend to another person any tax related matter. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

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