Did Kansas waive the estimated tax penalty for farmers and fishers who filed by April 15, 2013?

Plain-English summary

Kansas Notice 13-01 aligns Kansas with a federal deadline shift for farmers and fishers filing their 2012 returns.

Background. On January 18, 2013, the IRS announced that the March 1 filing deadline for farmers who do not pay estimated taxes was moved back to April 15 for the 2012 return, because late federal tax legislation delayed the IRS from preparing necessary forms (notably Form 4562 for depreciation). To use the April 15 date federally, a taxpayer completes federal Form 2210-F, checks the waiver box, and attaches it (see IRS Announcement IR 2013-7).

Kansas treatment. For Kansas, if at least two-thirds of a taxpayer's annual gross income is from farming or fishing and Form K-40 is filed and tax paid on or before March 1, the taxpayer may be exempt from the underpayment-of-estimated-tax penalty. Because of the federal extension, Kansas will not impose the estimated-tax penalty for tax year 2012 on returns indicating the taxpayer is a farmer or fisher if the Kansas return is filed and taxes are paid by April 15, 2013.

Date note. The notice bears no printed issue date; the earliest date it states is the IRS's January 18, 2013 announcement.

What this means for you

Farmers and fishers filing 2012 Kansas returns

• If you meet the two-thirds income test, you could file and pay your 2012 Kansas return by April 15, 2013 without the estimated-tax penalty, matching the extended federal deadline.

Tax preparers

• Confirm the two-thirds farming/fishing income test and, for the federal return, attach Form 2210-F with the waiver box checked.

Common questions

Who qualifies? Taxpayers with at least two-thirds of annual gross income from farming or fishing.

What was the relief? No Kansas estimated-tax penalty for tax year 2012 if the return was filed and tax paid by April 15, 2013.

Why did the deadline move? Late federal legislation delayed IRS form preparation, so the IRS pushed the farmer/fisher deadline from March 1 to April 15.

What federal form is needed? Form 2210-F with the waiver box checked.

Citations and references

• 2012 Kansas income tax return (Form K-40) -- the return on which the farmer/fisher estimated-tax penalty relief applies.
• IRS Announcement IR 2013-7 and federal Form 2210-F -- the federal deadline relief Kansas matched for tax year 2012.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 13-01

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                      NOTICE 13-01

                   2013 FILING DEADLINE FOR FARMERS AND FISHERS

 On January 18, 2013, the Internal Revenue Service announced that the March 1 filing

deadline for farmers that don't pay estimated taxes has been moved back to April 15th. The new
date was selected because late federal tax legislation delayed the IRS from preparing forms
necessary for processing returns (particularly Form 4562 which is used to report depreciation).

  To be able to use the April 15 deadline instead of March 1 for a farm return, the taxpayer

must complete federal Form 2210-F and check the waiver box. The form must be attached to the
return. See IRS Announcement, IR 2013-7.

  For Kansas income tax purposes, if at least two-thirds of a taxpayer's annual gross income

is from farming or fishing and Form K-40 is filed and tax paid on or before March 1st, the
taxpayer may be exempt from any penalty for underpayment of estimated tax. Because of the
extension being allowed on the federal level, for tax year 2012 Kansas estimated tax penalty will
not be imposed on returns which indicate the taxpayer is a farmer or fisher if the Kansas return is
filed and taxes are paid by April 15.

                                  Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about income tax, please contact:

                              Taxpayer Assistance Center
                             Kansas Department of Revenue
                             915 SW Harrison St., 1st Floor
                               Topeka, KS 66612-1588
                                 Phone: 785-368-8222
                                  Fax: 785-291-3614