AICPA urges IRS to waive penalties for farmers after Form 8995 revamp

Core Viewpoint - The American Institute of CPAs (AICPA) is advocating for the IRS and US Treasury to waive underpayment penalties for qualified farmers due to delays in the release of Form 8995, which has impacted their ability to file tax returns on time [1][5]. Group 1: Form Changes and Deadlines - The IRS revised the instructions for Form 8995 on 27 January 2026, requiring adjustments to reported amounts due to new deductions from the One Big Beautiful Bill Act [2]. - The updated version of Form 8995 was not accessible until 23 February 2026, creating challenges for farmers and fishers to meet the 2 March filing deadline [2][4]. - Farmers can skip the 15 January estimated tax installment if they file their federal return by 2 March 2026, allowing them to avoid underpayment penalties [3]. Group 2: Impact on Farmers - The AICPA highlighted that the late release of the form has caused significant difficulties for farmers, who rely heavily on the Qualified Business Income deduction [5]. - The organization has requested that the IRS and Treasury grant penalty relief under section 6654(e)(3)(A) for farmers who file their 2025 federal income tax returns by 15 April 2026 [6].