2022-14: Relief provided to farmers/fishermen and Form 4197 filers - Spidell

2022-14: Relief provided to farmers/fishermen and Form 4197 filers


The FTB is following recently issued IRS relief that waives estimated tax penalties for farmers and fisherman who were unable to comply with the March 1, 2022, filing and payment deadline as long as they file and pay their 2021 taxes by April 18, 2022.

The procedures for requesting estimated tax penalty relief are outlined in the FTB announcement available at:

www.ftb.ca.gov/about-ftb/newsroom/news-releases/2022-06-estimated-tax-penalty-relief-for-farmers-and-fishermen.html

The FTB has also confirmed that no penalties will be imposed for taxpayers who fail to file Form 4197, Information on Tax Expenditure Items, with their tax return. Taxpayers who received PPP loan forgiveness, Economic Injury Disaster Loan (EIDL) advance grants, or who operate cannabis businesses are asked to complete this form to assist the FTB in fulfilling its state-mandated data collection requirements regarding recently enacted tax benefits. However, because this form is not an “information return” there is no consequence for failing to file the return.

Attend Spidell’s 2022 Post-Tax Season Update and Review webinar and get the latest update on this and other issues that came up during tax season. Click here and register today.

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