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Estimated Tax Penalty Relief for Farmers and Fishermen Affected by the American Taxpayer Relief Act (ATRA)

Purpose of Bulletin

To inform staff that we will waive the estimated tax penalty for farmers and fishermen who are unable to file and pay their 2012 taxes by March 1, due to the delayed start for filing tax returns, if they file and pay their 2012 taxes by April 15, 2013.

Background

On January 18, 2013, IRS published IR 2013-7 providing penalty relief for farmers and fishermen who miss the March 1 filing deadline but file and pay by April 15, 2013. This same relief is available through California’s estimated tax penalty waiver process.

Waiver Request

If you receive contacts from farmers and fishermen who are affected by ATRA and are requesting a waiver of the estimated tax penalty, do the following:

Taxpayer has not filed their 2012 tax return

To be eligible for the estimated penalty waiver, taxpayers must file their return and pay by April 15, 2013. They must complete the FTB Form 5805F, Underpayment of Estimated Tax by Farmers and Fishermen with their return, and write “ATRA” on line 17 as the reason for the waiver request. FTB Form 5805F provides detailed instructions on how to complete line 17.

In order to process the returns correctly, they must check the box on FTB Form 540, line 113; Long Form 540NR, line 123 and FTB Form 541, line 42.

Taxpayers may e-file their return, and should follow their software’s instructions for claiming this waiver.

Taxpayer filed their 2012 tax return

Taxpayers who file after the March 1 deadline may request a waiver of the estimated tax penalty if they file and pay by April 15, 2013. They must complete the FTB Form 5805F with their return, and write “ATRA” on line 17 as the reason for the waiver request. FTB Form 5805F provides detailed instructions on how to complete line 17. Taxpayers can fax or mail their request to:

  • Fax: 916.845.9300
  • FRANCHISE TAX BOARD
    PO BOX 942840
    SACRAMENTO CA 94240-0040