Compliance
Penalty Relief for Farmers and Fishermen: What to Know Under Notice 2026-24
A new IRS notice gives qualifying farmers and fishermen relief from underpayment penalties if they act by April 15, 2026—offering a chance to avoid charges many didn’t anticipate.
By NomadicTax Research Team • 5-8 min read • April 28, 2026
## Understanding the New Relief
- Notice 2026-24 provides a **waiver** of the section 6654 addition to tax for qualifying farmers or fishermen who didn’t make required estimated tax payments over the 2025 tax year.
- To get the waiver, taxpayers must **file a calendar-year 2025 return by April 15, 2026**, and **pay all tax owed**. Filing and paying are both required. ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
- If you’ve already filed and reported the underpayment addition, you may still request an **abatement** with Form 843, marking “Request for Relief under Notice 2026-24.” ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
## Who Qualifies
- You must be an **individual USDA farmer or fisherman**, with at least **two-thirds of gross income** from farming or fishing in either 2025 or 2024.
- The trouble started because needed IRS guides (such as corrected instructions for Form 8995) weren’t ready until late February 2026, causing delays. That issue triggered this relief for those impacted. ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
## Practical Advice if You're in These Fields
1. **Check your income sources**: make sure at least two-thirds are farming or fishing in 2025 or 2024.
2. **File by April 15, 2026**, even if late—ensure your return is complete, with all accurate tax due paid.
3. **Don’t wait to pay**; underpayment addition will be waived only if full tax is paid with return.
4. If you already paid a penalty or reported it, fill out Form 843 as instructed.
## Example
- A fisherman earned 70% of income from fishing in 2025. He didn’t make the estimated tax payments quarterly. If he files his tax return for 2025 by April 15, 2026, and pays full tax due, he avoids the section 6654 penalty entirely—even though he missed all four quarterly payments.
- Another farmer, with similar income proportions, who already filed and has a penalty reported, can now use Form 843 to request abatement.
## Compliance Considerations
- Ensure that tax return reflects **all income and any estimated payments or withholding**. No loose ends.
- Be aware: this relief only applies to **calendar-year 2025 taxable year** for individuals. Trusts, estates, or other formats may not be eligible.
- Use reliable software or tax professional support, as corrected instructions (e.g. for Form 8995) were a key issue.
**Bottom line**: If you're a farmer or fisherman impacted by estimated tax penalties for 2025, this relief could save you significantly—but acts quickly to meet deadlines and follow procedures.