IRS reminder - Underpayment of estimated tax penalty relief for farmers, fishermen 

March 6: The IRS has issued a “quick alert” message providing a reminder to farmers and fishermen of underpayment of estimated tax penalty relief when they elect not to make quarterly estimated tax payments.

Penalty relief is generally available if farmers and fishermen file their income tax returns and pay the full amount of tax due by March 1. An IRS release in January 2013 explains that if the March 1 deadline is missed, farmers and fishermen will not be subject to the underpayment penalty for 2012 if they file their returns and pay the amount of tax due by April 15, 2013. Read TaxNewsFlash-Cooperatives (January 29, 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.


The IRS quick alert [PDF 26 KB] explains that to request a waiver of the underpayment penalty for 2012, the taxpayer is to attach Form 2210-F [PDF 72 KB] to the return and complete the following steps:


  • Enter only the taxpayer’s name and identifying number
  • Check box A in Part I
  • Leave the rest of Form 2210-F blank

The IRS stated that BR 2210F-001 has been disabled, which will allow the waiver without requiring the Explanation Statement to be attached until April 15, 2013.



For more information, contact KPMG’s National Director of Cooperative Tax Services:


David Antoni, in Philadelphia

(267) 256-1627


Or Associate National Director of KPMG’s Cooperative Tax Services


Brett Huston, in Sacramento


(916) 554-1654




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