Federal Register #REG-117095-25

IRS Proposed Regulations for Installment Payment of Tax on Farmland Sale

This opportunity involves a proposed IRS regulation affecting taxpayers who sell qualified farmland to a qualified farmer. - Government Buyer: - Department of the Treasury - Internal Revenue Service (IRS) - OEMs and Vendors: - No OEMs or vendors are mentioned; this is a regulatory notice, not a procurement request. - Products/Services Requested: - No products or services are being procured. - Notable Requirements: - Taxpayers may elect to pay tax on gain from the sale of qualified farmland property in four equal annual installments. - Must file Form 1062 and Schedule A (Form 1062). - Regulations clarify eligibility, election process, payment schedules, and acceleration events (such as death or liquidation). - Special provisions for pass-through entities and consolidated groups. - Definitions provided for farmland, farming purposes, and relevant taxable years. - Examples included for various scenarios.

Description

This document contains proposed regulations regarding the statutory election to pay in four equal annual installments the tax on the gain from the sale or exchange of qualified farmland property to a qualified farmer. The proposed regulations affect taxpayers who sell or exchange qualified farmland to a qualified farmer and elect to pay the tax on the gain from that sale or exchange in equal annual installments over four years. The regulations provide details on eligibility, the election process, installment payments, acceleration events, and exceptions. Comments and requests for a public hearing must be received by November 30, 2026.

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