Tax Planning
Relief for Farmers and Fishermen Underestimated Their Estimated Tax in 2025?
Notice 2026-24 waives penalties for qualifying farmers and fishermen who underpaid estimated taxes—provided certain conditions are met by April 15, 2026.
By NomadicTax Research Team • 5-8 min read • April 29, 2026
## Who Qualifies for the Waiver
Notice 2026-24 gives relief to individuals who derive at least two-thirds of their gross income from **farming or fishing** during 2025 or the preceding year. These are **qualifying farmers or fishermen** under IRC § 6654(i). ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
To earn the waiver, such taxpayers must:
1. File their **calendar-year 2025 tax return** by **April 15, 2026**.
2. Pay in full any tax reported as due on that return.
If they already filed and were charged the **section 6654 underpayment penalty**, they can request abatement using **Form 843**, citing “Request for Relief under Notice 2026-24.” ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
## Why This Matters
Agricultural income and fishing often have seasonal fluctuations—leading taxpayers to underestimate estimated tax obligations. Additionally, delays in tax software updates (particularly with Form 8995) made some returns hard to complete until late in the season. This made it hard for qualifying individuals to calculate and pay their tax liability on time. Notice 2026-24 addresses this by waiving the usual addition to tax under § 6654 in these circumstances. ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
## Examples
- A farmer whose 2025 income was 70% from farming, who files by April 15, **but didn’t make required estimated tax payments**—with this notice, they’ll avoid the typical underpayment penalty.
- A fisherman in a remote area with delayed software access, who wasn’t able to calculate net income due to delays, but still files 2025 return and pays tax due by the due date—relief applies.
## Practical Steps
- Confirm your income breakdown: ensure **≥ 2/3 gross income** came from farming or fishing in 2025 **or** 2024.
- If not filed yet, file by April 15, 2026 and pay fully any tax due.
- If you’ve already filed and were charged the penalty, use **Form 843 Claim for Refund and Request for Abatement**, following instructions in Notice 2026-24.
- Retain documentation showing your income sources and amounts from farming/fishing.
## Impact Summary
- Helps reduce financial shocks due to underpayment penalties.
- Encourages compliance by giving flexibility to those facing delays or seasonal income shifts.
- Particularly helpful to rural taxpayers facing logistical challenges.
## Bottom Line
If you're a farmer or fisherman with qualifying income and you meet the filing/payment deadlines, Notice 2026-24 gives you a rare chance to escape underpayment penalties for 2025. Acting by April 15, 2026 is key.