# Treasury and IRS Propose Farmland Tax Installment Rules

The Department of the Treasury and Internal Revenue Service (IRS) have issued proposed regulations that allow eligible taxpayers selling qualifying farmland to qualified farmers to elect to pay capital gains tax in four equal annual installments. This election applies to sales or exchanges occurring in taxable years beginning after July 4, 2025, and extends to partnerships, S corporations, trusts, and estates. These regulations will impact tax compliance, reporting requirements, and financial planning for affected taxpayers and entities involved in farmland transactions.

- **Why this matters:** Procurement professionals and contractors involved in agricultural land sales, tax advisory, and compliance services should prepare for changes in tax payment structures affecting farmland transactions.
- The installment payment option may influence contract structuring and financial forecasting for entities engaged in farmland sales or acquisitions.
- Organizations providing tax compliance and consulting services should update their guidance and systems to accommodate the new election provisions.
- This development signals Treasury and IRS efforts to provide flexible tax payment options, potentially affecting related procurement and financial management activities.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 29, 2026

### Government Entities
- Department of the Treasury (Treasury)
- Internal Revenue Service (IRS)

### Key Quotes
> Farmers should have practical options when farmland is sold.
> — Frank J. Bisignano, Chief Executive Officer, Internal Revenue Service

### Sources
- [Treasury, IRS issue proposed regulations on installment payments for tax on certain farmland sales | Internal Revenue Service](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-installment-payments-for-tax-on-certain-farmland-sales) - IRS