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IRS Extends Tax Deadline for Farms, Ranches Using Health Insurance Marketplace

If you're one of the farmers or ranchers who enrolled in the Health Insurance Marketplace and are scrambling to complete your tax return in time for the March 2 deadline, you can breathe easy for a few weeks. 

If - and only if - you use the Health Insurance Marketplace and file farm and ranch tax returns, the Internal Revenue Service extended the deadline to file the 2014 return and pay any tax due to April 15. The IRS announced the extension on Feb. 27.

The deadline is extended because of problems with the original Form 1095-A from the Health Insurance Marketplace. Some taxpayers will receive corrected Forms 1095-A, which is needed to file an accurate return. 

A press release from the IRS says, "…As a result, the IRS is waiving the penalty for failing to make 2014 estimated tax payments for any farmer or fisherman who, due to this delay, files their return and pays any tax due by Wednesday, April 15. Additional guidance on this issue will be forthcoming."

Normally, farmers and fishermen who choose not to make quarterly estimated tax payments are not subject to a penalty if they file their returns and pay the full amount of tax due by March 1. This year, the due date was pushed back to Monday, March 2, because the normal deadline falls on a Sunday. A taxpayer qualifies as a farmer or fisherman for tax year 2014 if at least two-thirds of the taxpayer’s total gross income was from farming or fishing in either 2013 or 2014.

Farmers and fishermen requesting this penalty waiver must attach Form 2210-F to their tax return. The form can be submitted electronically or on paper. The taxpayer’s name and identifying number should be entered at the top of the form, the waiver box (Part I, Box A) should be checked, and the rest of the form should be left blank.

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