The IRS has agreed to last-minute relief for farmers by extending their filing due date to April 15, 2019 – and withdrawing the underpayment penalty for those not making the Jan 15 tax estimate. This waiver of penalties for underpayment of taxes by farmers stems from tax provision uncertainties.
“This is welcome news to farmers, obviously, as the uncertainty surrounding tax reform and the lack of guidance on some key issues was causing strife throughout the industry. The recognition of this, and the action by the IRS to provide some relief through the deadline extension and penalty waiver, will allow more time to properly file tax returns,” says Brad Palen, partner at K·Coe Isom.
K·Coe Isom’s government and federal affairs team has been working closely with Chairman Peterson and his leadership on the House Ag Committee to request these adjustments due to uncertainty surrounding tax reform and the lack of guidance on some key issues from the IRS.
We will keep you apprised of any further guidance from the IRS regarding the number of issues impacting farmers in relation to the tax law changes that remain unclear. Should you have any questions, contact a K·Coe Isom tax advisor.