Estimated Tax Relief for Those in Farming and Fishing

Farmers or fishermen have only one required estimated tax installment due on January 15 of the year following the taxable year if at least two-thirds of the total gross income was from farming or fishing in either the taxable year or the preceding taxable year. If this estimated tax installment payment isn’t made, penalties are avoided if they file their return for the year by March 1. Some farmers and fishermen have been unable to electronically file Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, which may be required to be included in their 2021 federal income tax returns. Due to this inability to file electronically by the March 1, 2022, the IRS waived unpaid payment penalties if returns are filed by April 18, 2022 (April 19 if in Maine or Massachusetts). #IdeaoftheDay