July 2019

July 2019


Congress Passes Bill to Increase Chapter 12 Debt Limit

It’s been a long-debated issue, but Congress has now passed a bill to increase the debt limit for Chapter 12 bankruptcy eligibility.  On August 1, 2019, the Senate passed the Family Farmer Relief Act of 2019, a brief bill significantly increasing the amount of debt a farmer may have to be considered a “family farmer” eligible for Chapter 12 bankruptcy protection. The bill increases the debt limit to $10,000,000 from the $4,411,400 million current limit (indexed for inflation on April 1, 2019, from the statutory figure of $3,237,000). 11 U.S.C. § 101(18). The Senate action followed House passage of the bill, H.R. 2336, on July 25, 2019. The bill now awaits the President’s signature.

Continue reading about this bill.


2019 MFP Payments Will Issue Soon

On July 25, 2019, USDA published details as to how payments will be made under the 2019 Market Facilitation Program (MFP). First announced May 23, 2019, the 2019 MFP will include up to $14.5 billion in direct payments to producers. Payment details are now posted on the MFP page of the USDA website. Signups for this program began Monday, July 29, and will end December 6, 2019. 

MFP payments will be issued in up to three separate rounds. The first 2019 MFP payment, which will be made in mid-to-late August, will comprise the higher of: (1) 50 percent of a producer’s calculated payment or (2) $15 per acre. Whether the second and third rounds of payments will be made will depend upon market conditions and trade opportunities. If authorized, the second round of payments will be made in November, and the third in early January. 

Continue reading about the 2019 MFP payments.


Many Tax Forms are Changing!

IRS unveiled many new draft forms this month. Although these forms are not final, several are worth reviewing.

Good-bye Postcard. Although opinions about tax reform vary among tax practitioners, there is one 2018 change that was nearly universally chided. The 2018 Form 1040—while created to showcase a new, “simplified” approach to individual income tax returns—actually led to more attachments, a more cumbersome review process, and numerous tax practitioner complaints.

It appears IRS listened (and likely had its own struggles with the form), revealing this month a draft 2019 Form 1040 restoring many features from the past. Even so, the draft is a composite of old and new. We’ll still have numbered schedules and the two pages don’t quite fill the page.

Continue reading about these draft form changes.

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