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
While there is no guarantee a House vote will happen today, the measure has officially been placed on the congressional calendar.
President Trump and Treasury Secretary Scott Bessent are expected to discuss commodities, trade and regional stability during meetings in Asia.
Advocacy groups say farmers, ranchers and business owners may need to file claims before a July deadline.
A bipartisan Senate delegation recently traveled to China ahead of President Trump’s meeting in Beijing.
Trucking industry expert Lewie Pugh joins us to discuss rising diesel costs, challenges facing independent truckers, and the broader impact on agriculture and rural transportation.
The White House is reportedly moving forward with beef import tariff reductions as officials look to lower food costs for consumers.

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:

Ethanol plants kept production steady, but softer gasoline demand and lower exports may limit near-term momentum.
Aimee Bissell discusses Iowa planting progress, weather conditions, fertilizer costs, and concerns over early crop development.
Farm CPA Paul Neiffer discusses SDRP payment limits and offers advice for those seeking higher limits.
Farmers are closely watching upcoming U.S.-China trade talks as rising fertilizer and diesel costs continue to pressure exports, margins, and rural economies.
Dr. David Anderson says lean beef demand and lighter cow culling are still giving cull cow prices room to push higher.
Stronger overseas demand for both fuel ethanol and feed co-products continues to reinforce corn use beyond the domestic market.