March 30, 2022 3:24 am

Farmers and Fishermen Get Penalty Waiver

Usually, farmers and fishermen are only required to make one estimated tax payment if they are “qualified.” Being qualified means having two-thirds of gross income in the current or previous year from farming or fishing businesses. And no estimated tax payment is required if they file their returns and pay any tax due by March 1. Those who operate their farming or fishing businesses as an S corporation may need to file new Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, with their 2021 return. However, there were problems with third-party software companies in filing this form electronically by March 1, 2022. As a result, the IRS waived any penalties that would otherwise be due for not filing by March 1 as long as the return is filed by April 18, 2022 (April 19 for those in Maine or Massachusetts) (IR-2022-49).

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Tax Glossary

Section 1231 property

Depreciable property used in a trade or business and held for more than a year. All Section 1231 gains and losses are netted; a net gain is treated as capital gain, a net loss as an ordinary loss.

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