Farmers, fishermen offered relief for underpayment of estimated income tax

The IRS recently issued Notice 2026-24, which offers relief for qualifying farmers and fishermen who may be subject to penalties for underpayment of estimated income taxes.  

Farmers usually have until the end of February each year to file/pay their tax returns and avoid underpayment penalties. This year, the deadline fell on Monday, March 2.

CPAs who work with Wisconsin farmers are likely familiar with the special rules for farmers/fishermen under Section 6654(i).

Due to some issues this year with the qualified income deduction (Section 199A), as explained in Notice 2026-24, the IRS offered this tax relief to farmers and fishermen.

If they have already filed their 2025 tax returns and incurred some penalties, refund opportunities might be available. For more details, see Notice 2026-24.