IRS to Provide Relief to Qualifying Farmers and Fishermen Due to Technology Problems
The IRS recently issued Notice 2022-13, which provides a waiver of the addition to tax under section 6654 for underpayment of estimated income tax by qualifying farmers and fishermen.
Under the notice, the addition to tax is waived for farmers and fishermen who, by April 18, 2022, or, for those taxpayers who reside in Maine or Massachusetts, by April 19, 2022, file their 2021 federal income tax return and pay in full any tax reported as due on the return.
The IRS issued the relief due to a third-party software issue affecting qualifying farmers and fishermen attempting to electronically file Forms 7203.
Qualifying farmers and fishermen are those who are not subject to an addition to tax for failing to pay the required estimated tax installment payment by Jan. 15, 2022, if they file their returns and pay the full amount of tax reported on the return as payable by March 1, 2022.