QuickAlerts - Technical - Correction: Underpayment of Estimated Income Tax by Individual Farmers and Fishermen

Subject:  Correction: Underpayment of Estimated Income Tax by Individual Farmers and Fishermen

The IRS is granting an extension of the March 1st deadline for farmers and fishermen to make their estimated tax payment before being subject to estimated tax penalties – as long as they file and pay the full amount of tax reported on their 2018 return by April 15, 2019 (or by April 17, 2019, for those taxpayers who live in Maine or Massachusetts).

• To claim the waiver of the estimated tax penalty, farmers and fishermen must attach Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to their 2018 tax return. The taxpayer’s name and identifying number should be entered at the top of the form, and the waiver box (Part I, Box A) should be checked.  The rest of the form should be left blank.

• This relief will expand the number of taxpayers eligible for filing the Form 2210-F using checkbox A and will not require calculations or an attachment.

• The IRS will disable four business rules as of March 2:
  
1. F2210F-001 (If Form 2210-F, Part I, Line A checkbox 'PenaltyWaiverRequestInd' is checked, then [WaiverExplanationStatement] must be attached to Line 16.)

2. F2210F-006 (Form 2210-F, 'PenaltyAmt' must be equal to 'EsPenaltyAmt' in the return).

3. F2210F-004:  If Form 2210-F, Line 16 'PenaltyAmt' has a non-zero value, then [WaiverExplanationStatement] must be attached to Line 16.   

4. F2210F-005-01:  Form 2210F 'WithholdingTaxesAmt' must be equal to Form 1041, Line 25e, 'FederalIncomeTaxWithheldAmt'.

• Please adjust your software to accommodate this change

• Farmers or fishermen who qualify for the relief include:

1. Those that did not make the required estimated tax installment payment by January 15, 2019 and

2. Who file and pay the full amount of tax reported on their 2018 return by April 15, 2019 (April 17, 2019, for those taxpayers who live in Maine or Massachusetts).

The Instructions for Form 2210-F have been revised.  Please refer to IRS.gov/Form2210F.