Farms due March 1st - S corp status change that?

[WITAXLADY]

So a farmer, Sch F does not have to pay until March 1st if filing by 3/1

So if the farm is now an S corp and the individual is no longer a farmer but a Shareholder - does he still owe by 3/1? or by April 15th?

Bu then he would have to be making estimates?

If he does not have all his stuff together - can he make a payment 3/1 and that is good? and finish up later?

Thx d

[schirallicpa]

I think all the March 1st deadline does is keep away the penalties. Otherwise, they follow the April 15 deadline but can be assessed penalty for not paying by the 3/1 deadline.  I believe that when they are a S corp the S corp follows normal reporting on 3/15 and then the shareholders follow the april 15 deadline for filing.  

 

[Gail in Virginia]

It was my understanding that a farmer had to FILE and PAY by March 1 to avoid the penalty for not making estimated tax payments.  As long as two-thirds of the gross income is from farming, I think he or she would still be a farmer for this purpose, even if filing as an S-corporation, although I would be more confident if it were a partnership since I have had that situation.  However, i think to use that exception to the penalty, the corporation return and the individual return would both have to be filed by March 1.  

[DANRVAN]

3 hours ago, WITAXLADY said:

o if the farm is now an S corp and the individual is no longer a farmer but a Shareholder

The wages he receives as a  shareholder/employee do not count as gross income from farming and therefore do not count towards the special estimated tax payment rules of section 6654(i) for farmers.

 

3 hours ago, WITAXLADY said:

If he does not have all his stuff together - can he make a payment 3/1 and that is good?

Even if he met the estimated tax exception for farmers, he would have to either make his estimated payment by January 15th; or file and pay by March 1st.

[WITAXLADY]

Thank you

He paid but didn't file as last of dividend paperwork not in

will have to see the repercussion..

Darn stock companies - really messing tax returns up this year