AICPA seeks tax relief for farmers

In a letter to the IRS, the AICPA requested penalty relief for qualified farmers due to changes made to the instructions for Form 8995, Qualified Business Income Deduction Simplified Computation.

The changes create a shortened filing window and may cause a disadvantage to some qualified farmers outside of their control, the AICPA said.

The IRS updated instructions for Form 8995 in January, which require taxpayers to reduce the amount reported on line 11 (“taxable income before qualified business income deduction”) as a result of new deductions on Form 1040, line 13b, put into place by H.R. 1, commonly known as the One Big Beautiful Bill Act.

Because of this change, the IRS revised and reissued Form 8995. In some cases, the updated form wasn’t made available until Monday, Feb. 23, creating difficulties for farmers and fishers. See the AICPA’s recommendations.