WASHINGTON, D.C. — The Internal Revenue Service (IRS) has issued a reminder to farmers and fishers who chose not to make estimated tax payments by January that they must generally file their 2023 federal income tax return and pay all taxes due by Friday, March 1, 2024. This special deadline allows farmers and fishers to avoid any potential penalties associated with estimated tax payments.
For the purpose of this deadline, a farmer or fisher is defined as anyone who received at least two-thirds of their gross income from farming or fishing during either 2022 or 2023. The IRS’s reminder underscores the importance of being aware of unique tax deadlines and requirements for specific occupations to avoid penalties and remain in compliance with federal tax laws.
This special March 1 deadline applies to those who qualify as farmers or fishers and did not make an estimated tax payment by January 16, 2024. Those who made a qualifying payment by January 16 can wait until the regular April 15, 2024, deadline to file and still avoid estimated tax penalties. The deadline extends to April 17, 2024, for residents of Maine and Massachusetts.
In addition to the reminder, the IRS offers several online options for making tax payments. Taxpayers can use their Online Account to make same-day payments from a checking or savings account, or schedule payments in advance using IRS Direct Pay. These online options provide a safe, fast, and easy method for taxpayers to manage and fulfill their tax obligations.
The Online Account also allows individuals to view their payment history, balance, payment plan information, and digital copies of certain notices sent from the IRS. Additionally, taxpayers who need to pay business taxes through the Electronic Federal Tax Payment System (EFTPS) can choose to use this system to make their individual income tax payments.
For taxpayers in disaster areas, there are special rules in place. 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. This extension is automatic, and no additional paperwork or contact with the IRS is necessary.
Farmers and fishers can use specific forms to report their income and expenses. Farmers use Schedule F (Form 1040), Profit or Loss From Farming, and Schedule SE (Form 1040), Self-Employment Tax, if net earnings from farming are $400 or more. Fishers use Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), and Schedule SE (Form 1040), Self-Employment Tax, if net earnings from fishing are $400 or more.
This reminder from the IRS aims to help taxpayers stay on top of their tax obligations and avoid any penalties or interest for late filing or payment. It is important for all taxpayers to know their filing deadlines and understand the forms they need to use based on their specific situation.
As the March 1 deadline approaches, farmers and fishers are being encouraged to take advantage of these resources and make sure they are prepared to file their taxes accurately and on time.
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