The IRS just released a notice announcing that processing of returns will commence on January 30, 2013 for most individuals. More complex returns will not be accepted by the IRS until late February or even into March, 2013 due to the complex changes to the IRS software system caused by last week’s new tax law.
The notice mentioned specifically form 4562 (Depreciation) will not be available until that time period. We know that almost 100% of our farmers have depreciation reported on this form. We are assuming that the March 1 farmer filing due date may get delayed by the IRS, however, they have not specifically mentioned that yet in an announcement.
As we have discussed in numerous other posts, this year may be a perfect time for farmers who normally file by March 1 to simply make their required estimated tax payment (lesser of 100% of 2011 tax or 2/3 or this year’s estimated tax liability) on January 15. This allows the farmer to file on April 15 and pay the remaining tax that may be owed then without any additional penalty.
With all of the changes associated with the new law and associated tax planning for 2012 and 2013, the extra 45 days may come in handy.
In yesterday’s post on S corporations, I became aware of one typo plus my discussion on installment sales was incorrect. Here is a link to the updated post.
Paul Neiffer, CPA