The Internal Revenue Service (IRS) asked farmers and fishermen to pay their tax dues by the beginning of March, failing which they could be subject to penalties.
Farmers and fishermen who did not make 2023 estimated tax payments by Jan. 16, 2024, are required to file returns and pay all tax dues by March 1, the IRS announced Tuesday. “The special March 1, 2024, deadline allows farmers and fishers to avoid any estimated tax penalties,” the agency said. A farmer or a fisherman is defined as “anyone who received at least two-thirds of their gross income from farming or fishing during either 2022 or 2023.”
If qualifying payments were made by Jan. 16, taxpayers can wait until the regular April 15 deadline to file their returns, and still avoid penalties.
“Disaster-area taxpayers, including farmers and fishers, have more time to file and pay. Currently, individuals and businesses in parts of Connecticut, Maine, Michigan, Rhode Island, Tennessee, and West Virginia, have until June 17, 2024, to file their 2023 return and pay any tax due,” the IRS stated.
“This extension is automatic; taxpayers don’t need to file any paperwork or call the IRS to get it. Like other taxpayers, those in a disaster area who need more time can request a tax-filing extension.”
Farmers and fishermen who do not pay any estimated taxes or enough estimated taxes by the due date of Jan. 16 usually have to pay a penalty.
Taxpayers can estimate the penalty by calculating the difference between the amount of 2023 withholding plus estimated tax paid by Jan. 16, 2024, and the smaller of the following: 66.67 percent (rather than 90 percent) of the 2023 tax, or 100 percent of the tax shown on their 2022 return.
“You won’t owe an estimated tax penalty if the tax shown on your 2023 return, minus your 2023 withholding, is less than $1,000.”
“Online Account allows individuals to make same-day payments from a checking or savings account. Taxpayers can also see their payment history, balance and payment plan information, and digital copies of certain notices sent from the IRS,” the agency said.
“Taxpayers can use IRS Direct Pay to schedule a payment from their bank account with no registration or login required. Those who need to pay business taxes through the Electronic Federal Tax Payment System (EFTPS) can also choose to use this system to make their individual income tax payments.”
The current filing season began Jan. 29. The IRS is expecting over 146 million individual returns to be filed this time around. The agency stated it would extend service hours at almost 250 Taxpayer Assistance Centers (TACs) across the country.
During the visit, IRS employees may also ask for information regarding the taxpayer’s current mailing address as well as proof of bank account information included on a tax return.
The IRS also said last week that it was postponing certain tax return due dates for some Michigan taxpayers who were impacted by the severe storms, tornadoes, and flooding that began on Aug. 24, 2023. As such, individual returns due on April 15 can now be filed by June 17.
Taxpayers who qualify for the extension include those from Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland, and Wayne counties. “Individuals and households that reside or have a business in these localities qualify for tax relief.”
