According to today’s release (IR-2013-7 (January 18, 2013)), the enactment of the American Taxpayer Relief Act of 2012 in early January 2013 affected several tax forms often filed by farmers and fishermen—including Form 4562, Depreciation and Amortization (Including Information on Listed Property).
The IRS explained that the affected forms will require extensive programming and testing of IRS systems, which in turn will delay the IRS’s ability to accept and process these forms.
The IRS is providing this penalty relief because delays in its 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 will apply to all farmers and fishermen, not only those who must file late released forms.
Typically, farmers and fishermen who choose not to make quarterly estimated tax payments are not subject to a penalty if they file their returns and pay the full amount of tax due by March 1. Under the to-be-issued guidance, 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 IRS Form 2210-F to their tax returns (either electronically or on paper) with the taxpayer’s name and identifying number entered at the top of the form, the waiver box (Part I, Box A) checked, and the rest of the form left blank.
For more information, contact KPMG’s National Director of Cooperative Tax Services:
David Antoni, in Philadelphia
Or Associate National Director of KPMG’s Cooperative Tax Services
Brett Huston, in Sacramento