Farmers and fishermen relief Public Service Bulletin

March 14, 2019

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 2018 taxes by March 1, 2019, if they file and pay their 2018 taxes by April 15, 2019.

Background

On February 28, 2019, the IRS published Notice 2019-17 providing penalty relief for farmers and fishermen who miss the March 1 filing deadline but file and pay by April 15, 2019. This same relief is available through California’s estimated tax penalty waiver process.

Taxpayer inquiries

If you receive contacts from farmers and fishermen who are affected by IRS Notice 2019-17, and are requesting a waiver of the estimated tax penalty, do the following:

If the taxpayer has filed their 2018 tax return:

Taxpayers who filed after the March 1 deadline may request a waiver of the estimated tax penalty if they file and pay by April 15, 2019. Complete form FTB 5805F, Underpayment of Estimated Tax by Farmers and Fisherman, and check the box on Part II, line 16, stating the reason for the waiver request is “IRS Notice 2019-17.” The form FTB 5805F provides detailed instructions on how to complete line 16.

Taxpayers can fax (916) 845-9300, or mail their request to:

Mail

Franchise Tax Board
PO Box 942840
Sacramento, CA
94240-0040

If the taxpayer has not filed their 2018 tax return:

To be eligible for the estimated penalty waiver, farmers and fisherman must file their return and pay by April 15, 2019. They must complete the form FTB 5805F. Check the box on form FTB 5805F, Part II, line 16, stating the reason for the waiver request is “IRS Notice 2019-17”, and attach the form FTB 5805F to their tax return. The form FTB 5805F provides detailed instructions on how to complete line 16.

In order to process the returns correctly, they must check the applicable box on Form 540, line 113; Long Form 540NR, line 123; or Form 541, line 44.

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