Tax News Flashes
We flashed this article on April 3:
IRS Penalty Relief to Farmers Affected by MF Global
On March 23, 2012, IRS published IR 2012-37 providing relief to farmers and fishermen affected by the MF Global bankruptcy. As an unusual circumstance, this relief is available through California’s existing estimate tax waiver process as described below.
Have not yet filed your return?
To request a waiver of the estimated tax penalty, taxpayers who have not filed their returns, need to complete Form 5805F. On line 16, state the reason for the waiver request is “MF Global.” The form 5805F provides detailed instructions on how to complete line 16. Unlike federal, you may e-file your return.
Important: In order to process your return correctly, you must fill in the circle on Form 540, line 113; Long Form 540NR, line 123; or Form 541, line 42.
Already filed your return
To request a waiver of the estimated tax penalty if you have already filed your return, complete Form 5805F, line 16, stating the reason for the waiver request is “MF Global.” The form 5805F provides detailed instructions on how to complete line 16. You can fax your waiver request to 916.845.9300 or mail it to FRANCHISE TAX BOARD, PO BOX 942840 SACRAMENTO, CA 94240-0040.