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Story
July 28, 1943
Midland Cooperator
Minneapolis, Hennepin County, Minnesota
What is this article about?
Special tax rules for farmers under the 1942 federal pay-as-you-go income tax law allow estimation of annual income by December 15, with payment of total estimated tax minus prior payments. Final return due March 15, 1943, with refunds or additional payments. Penalty if estimate is less than 66 2/3% of actual tax.
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What Farmer Does Under New Tax Law
Because it is nearly impossible for farmers to estimate in advance what their income for the entire year will be, they are given special treatment under the federal pay-as-you-go tax law. They will be required to make their first and only estimate of annual income on or before Dec. 15 at which time they must pay their total estimated tax for the year. This year they can deduct what they paid in March and June toward their 1942 income tax.
Next March 15 farmers will file a final income tax return based upon their actual 1943 income and at that time will pay any balance due, or, if they have paid too much, they will get a refund or tax credit.
A farmer will be penalized, though, if his December estimate of his tax is less than 66 2/3% of the actual tax. In that case he must pay an added tax.
Because it is nearly impossible for farmers to estimate in advance what their income for the entire year will be, they are given special treatment under the federal pay-as-you-go tax law. They will be required to make their first and only estimate of annual income on or before Dec. 15 at which time they must pay their total estimated tax for the year. This year they can deduct what they paid in March and June toward their 1942 income tax.
Next March 15 farmers will file a final income tax return based upon their actual 1943 income and at that time will pay any balance due, or, if they have paid too much, they will get a refund or tax credit.
A farmer will be penalized, though, if his December estimate of his tax is less than 66 2/3% of the actual tax. In that case he must pay an added tax.
What sub-type of article is it?
Tax Law Explanation
Agricultural Policy
What keywords are associated?
Farmers
Tax Law
Income Tax
Estimation
Penalty
Pay As You Go
Where did it happen?
United States
Story Details
Location
United States
Event Date
1942 1943
Story Details
Farmers estimate annual income tax by Dec. 15, pay total minus prior installments; file final return March 15, 1943, with adjustments; penalized if estimate under 66 2/3% of actual.