Don’t Submit Certain Forms Yet
The Taxpayer Certainty and Disaster Tax Relief Act of 2019 was signed by the President on December 20, 2019 and provided an extension of many tax credits related to Ag. However, the IRS is E-file system is not ready to accept any of the related tax forms to claim these credits for 2019. Therefore, taxpayers should not submit any tax return with these forms until the IRS is ready. Here is a list of the forms:
- Form 6478 – Biofuel Producer Credit
- Form 6627 – Environmental Taxes
- Form 8835 – Renewable Electricity, Refined Coal, and Indian Coal Production Credit
- Form 8844 – Empowerment Zone Employment Credit
- Form 8864 – Biodiesel and Renewable Diesel Fuels Credit
- Form 8900 – Qualified Railroad Track Maintenance Credit
- Form 8910 – Alternative Motor Vehicle Credit
Also, we have gotten questions regarding filing amended tax returns for 2018 to claim the reduce Kiddie Tax. There was no appropriate tax form for 2018 returns since the original Kiddie Tax was not in place for that year and thus no form was required. One option is to file an amended tax return using the 2017 tax form. However, this may delay the processing of the return by the IRS. It may make sense to wait until further guidance is received from the IRS. Either way, it is likely that the IRS may take up to six months to process an amended Kiddie Tax return.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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