Farmers and Fishermen Estimated Tax Penalty Relief

Michigan farmers and fishermen will not be subject to penalty and interest for underpayment of estimated tax if they file their 2012 income tax returns and pay the entire tax due by April 15, 2013.

Generally, for both state and federal income tax purposes, farmers and fishermen who choose not to make quarterly estimated tax payments are not subject to penalty and interest for underpayment of estimated tax if they file their returns and pay the full amount of tax due by March 1. However, the IRS is providing relief from the estimated tax penalty and interest for farmers and fishermen unable to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing 2012 tax returns. The Michigan Department of Treasury will follow the federal standard for the 2012 tax year filing deadline for farmers and fishermen. For the 2012 tax year, consistent with IRS guidance, farmers and fishermen who file and pay Michigan income tax by April 15, 2013, will not be subject to penalty and interest for underpayment of estimated tax.

Click on the following link for information on IRS Notice IR-2013-7: IRS Provides Penalty Relief to Farmers and Fishermen

Contact Treasury at (517) 636-4486 with questions regarding this notice.