Rural Money: IRS Penalty Refunds Could Reach Farmers and Families

A tax preparer can help identify penalty and interest charges and determine whether Form 843 should be filed.

farming taxes accounting money_adobe stock.png

Adobe Stock

NASHVILLE, TENN. (RFD NEWS) — Farmers, rural business owners, and families who paid IRS late fees, estimated-tax penalties, or interest during the COVID years may have money waiting to be refunded. The catch is that they likely have to ask for it before the deadline passes.

AARP reports the issue involves penalties and interest charged during the federal COVID disaster period, which ran from Jan. 20, 2020, through July 10, 2023. The National Taxpayer Advocate says millions of taxpayers could be affected, but refunds are not expected to arrive automatically.

That means anyone who filed late, paid late, missed estimated tax payments, or was charged interest by the IRS during that period should review their old tax records. Farmers and self-employed rural taxpayers may want to pay close attention, as estimated tax rules often apply to their operations.

The first step is checking IRS account transcripts for 2020, 2021, 2022, and 2023. A tax preparer can help identify penalty and interest charges and determine whether Form 843 should be filed.

The IRS is still fighting the court ruling, but taxpayers may need to file a protective claim by July 10, 2026, to preserve refund rights.

Farm-Level Takeaway: If you paid IRS penalties or interest during the COVID years, review your records now, because a refund may not be issued unless you request it.
Tony St. James, RFD News Markets Specialist
Related Stories
Egg production accounted for much of the increase.
Farm Bureau Economist Dr. Faith Parum joins us to break down what year-round E15 passage could mean for agriculture, energy markets, and the future of renewable fuels in the United States.
Kentucky Farm Bureau President Eddie Melton joins us to discuss fertilizer affordability concerns, Senate Agriculture Committee testimony, and spring planting conditions in Kentucky.
The longtime extension leader and former state senator says agriculture continues shaping his work and values.
Mike Steenhoek with the Soy Transportation Coalition joins us to discuss the proposed federal gas tax suspension, fuel cost pressures, and what the policy could mean for agriculture and transportation.
Agri Stats would no longer be allowed to show participant lists, rankings, or “flags,” and it could only report individual company data in narrow situations.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Thailand will not replace major corn buyers overnight, but renewed access could create another outlet for U.S. corn demand.
Farmdoc economist estimates 2024 colony stock losses at roughly $175 million, with rebuilding and renovation costs near $161 million.
China’s soybean buying is shifting hard toward Brazil, leaving U.S. shipments at risk of slowing as South America’s record crop reaches export channels
For dairy producers, that could help support fluid milk use in cafeterias, breakfast programs, and other child nutrition settings.
EU simplification may reduce some paperwork, but U.S. exporters still face costly traceability requirements.
Lower wheat production, smaller stocks, and higher projected prices explain the rally and put more attention on Plains crop conditions.