Show Farmers Question Notices From IRS Some farmers have complained complained complained com com- that they have received received re re- re- re in error eITor IRS RS notices proposing pen penalties penalties' l for r- r rAU fail AU- failure fail fail- failure ure to file estimated tax Roland V. V Wise IRS District Director for Utah reported today THESE notices involve situations when the taxpayer misinterpreted the proper reporting of farm rental income income income in in- come or when it was questioned questioned questioned ques ques- whether the return was filed in time he said Mr Wise pointed out that many of these farmers erroneously reported crop share income as miscellaneous income on the Form 1040 THE ONLY income to be reported on the miscellaneous income schedule as outlined in the IRS instructions is that in which the taxpayer did not materially participate in the operation of the farm he said Under the law Mr Wise said farmers are required either to file files file an estimated r return b Jan or tax by 31 or file a Form 1040 by a special special special cial due date for farmers THE TAX reform act of 1969 changed the due date for farmers to file timely income tax returns instead of estimated tax from February February February Feb Feb- 15 to M March ch 1 In 1970 however March 1 was a Sunday Sun Sun- Sunday day so the deadline was extended extended extended ex ex- ex- ex tended to March 2 2 Mr Wise said that those returns returns returns re re- re- re turns mailed on the very last date for timely filing may not have reached the IRS computer service center in time to prevent issuance of the proposed penalty notices HOWEVER he emphasized that the forms received by the taxpayers are not assessments for additional tax or penalties but rather are notices of proposed pen pen- The best way to correct this situation Mr Wise advised advised advised ad ad- is for those taxpayers who qualify as farmers receiving receiving re re- re- re cei ving two-thirds two of their income income income in in- come from the operation of a farm and who filed a return on or before March 2 1970 to indicate this on the Form and return it to the IRS service center that sent out the notice TAXPAYERS who do not qualify as farmers or who did not file timely returns may still be subject to the estimated tax penalties Mr Wise noted however |