File FSA-520 Now!
Most every farmer has likely filed their FSA-520 Application for the Emergency Relief Program (ERP) by now. However, if you have not filed it, make sure to file by this Friday July 22. This is the deadline for filing the application.
The FSA-510 Form is required to be filed with FSA within 60 days of July 22 or approximately September 20. This is the form that indicates to FSA that farm income exceeds 75% of overall AGI that allows for an increased payment. Many farmers assume that this form must be filed with the regular application. This is incorrect. This form can be filed after July 22 and the FSA will update their records and pay the farmer any excess amounts usually within a week.
Also, last week, Senator Thune and Kobuchar along with several other Senators sent a letter to the FSA office asking for various fixes to the issues with ERP. Several of those requests dealt with the issues we have faced regarding equipment sales and farmers with losses. The hope is that this letter will spur the FSA to making those needed changes.
We will keep you posted.
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.
On FSA-510, the CPA Certification Letter states that the returns have been timely filed. What if the returns have been filed but not timely? Do you change the wording on the letter or does it make the farmer ineligible if the return hasn’t been timely filed?