Although we posted on this subject already, we have received multiple questions from readers and other CPAs regarding filing after March 1. As of the time of this post, there are most likely at least two major forms that the IRS has not yet released that will directly affect most if not all of our farmers.
First, is form 8582 which reconciles your passive income and loss calculations assuming you may have some activities that are passive.
Secondly, Form 8903 which is used to calculate your Domestic Production Activities Deduction (DPAD) has not been released. Every active farmer will qualify to calculate this deduction (you may not end up with a deduction, but should calculate to verify). Also, if the farmer is a member of a cooperative that distributes a DPAD deduction to the farmer, you will need to fill out this form to claim the deduction.
Therefore, since there are only about 5 days left before the March 1 deadline and these two forms are not yet formally available, there should be no concern with filing after the March 1 normal filing deadline to take advantage of paying the tax on April 15. The IRS recognizes that substantial delays have been caused by Congress and the President delaying the new law as long as they did.
The only time to file by March 1, 2013 is if you have a desire to pay your income tax early. Otherwise, if you would rather wait until April 15 to pay your tax without a penalty, wait until after March 1 to file your tax return.
Paul Neiffer, CPA
Categories: Farm Industry Trends, Farm Taxes