In a last-minute announcement, the IRS has declared that farmers waiting for a corrected 1095-A will have until April 15 to file their returns and pay their taxes. If they file Form 2210-F along with their return, the penalty for failure to pay quarterly estmated tax will be waived.
Last week we learned that the Health Insurance Marketplace sent out about 800,000 incorrect 1095-A Forms to taxpayers. Apparently, some states with exchanges, including California, did the same thing. These forms incorrectly reported the premium amount for the second-lowest priced Silver plan from 2015, not 2014. This information is required to calculate the amount of the premium tax credit to which the taxpayer was entitled in 2014. CMS advised taxpayers to wait to file their returns until receiving a corrected form in early March. This presented a problem for farmers whose returns were due March 2. Farmers who file their returns by March 2 and pay all taxes at that time do not owe penalties for failure to pay estimated taxes throughout the year.
But, problem solved! In this surprise announcement, farmers seeking this estimated penalty relief are instructed to attach Form 2210-F to their tax return. The form can be submitted electronically or on paper. They are to enter their name and identifying number at the top of the form, check the waiver box (Part I, Box A), and leave the rest of the form blank.
Stay tuned for further extensions.
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