Today is Farmer’s Estimated Tax Due Date
We wrote on this subject a few weeks ago, but wanted to reinforce that farmers should consider paying an estimated tax payment today. If you make that payment, you now have until April 15, 2019 to file your income tax return instead of trying to get it done by March 1.
With all of the changes due to tax reform, it may be impossible to get your tax return timely filed by March 1 and we cannot expect the IRS to grant an extension to file like they did a few years back.
That extension was granted since Congress passed a tax extender law right at year-end and the IRS had to update their forms to process tax returns. The IRS has had a full year to update their forms for tax reform so we may not get the same relief.
Remember, the payment required is the lesser of (1) 100% of 2017 tax paid or 2/3rds of this year’s expected tax. If you are a little short, the penalty is really an interest charge from January 15 until you pay the tax.
If you miss today’s deadline, go ahead and still send in a payment. If you are 2 days late on a $10,000 payment, the penalty is $3 if you pay the remainder on April 15.
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.
Paul, I enjoy receiving your text messages. They are so informative. I have a tax situation and need some direction on how to handle it on tax return. My husband is a farmer. He plants row crops mainly tobacco, also peanuts, corn and soybeans. This summer his shed and bulk barns where he puts the tobacco in and cures it caught fire and burned up. The shed and barns were a total loss. The insurance company adjusted the damage a sent proceeds for the loss. We are going to replace the shed and barns, but have not yet. Can you advise me on the tax treatment for this situation?