The IRS is granting an extension of the March 1st deadline for farmers and fishermen to make their estimated tax payment before being subject to estimated tax penalties – as long as they file and pay the full amount of tax reported on their 2018 return by April 15, 2019 (or by April 17, 2019, for those taxpayers who live in Maine or Massachusetts).
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 tax year 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.
Farmers or fishermen who qualify for the relief include:
- Those that did not make the required estimated tax installment payment by January 15, 2019; and
- Who file and pay the full amount of tax reported on their 2018 return by April 15, 2019 (April 17, 2019, for those taxpayers who live in Maine or Massachusetts)
To claim the waiver of the estimated tax penalty:
- Attach Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to the client’s 2018 tax return.
- Enter the taxpayer’s name and identifying number, usually a social security number, at the top of the form
- Check the waiver box (Part I, Box A).
- Leave the rest of the form blank; no calculations or attachments are required.
We are currently working to update TaxAct® 2018 Professional to reflect this change. We will post to the Notification Center when the update is complete.