Farmer’s Tax Due Date – March 1 or April 15?
- By: Paul Neiffer
- February 21st, 2011
- 1 Comment
With about 8 days to March 1, most farmers are frantically scrambling to get all of their tax data accumulated and presented to their tax preparers. Almost all farmers try to file by March 1 since there is no penalty for filing and paying their income tax for the year by that date even if the payment is substantial.
However, I would like to remind our farmers again that if they have paid in enough income tax, either through withholding or estimates to prevent an penalty for underpayment of estimated tax, they do not have to rush to get filed by March 1. If their tax for the previous year is very low, for example, $2,000 or less, the actual penalty would also be extremely small (based on this $2,000 amount, the penalty might only be about $20 or so.)
Therefore, if you have paid in enough to cover your requirements or your tax for the previous year was very small, do not worry about March 1, just get if filed by April 15 and your life will be easier.
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 partner with CliftonLarsonAllen in Yakima, 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. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).
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