Farmers are getting used to regulatory agencies in Washington trying to make it harder to farm; this time it is the IRS. The agency is proposing new estate tax rules that would cost farmers dearly. The National Association of Conservation districts is the latest farm group to call for the IRS to drop its proposal. President Elect Brent Vandyke stated, “This would mean a major disruption for many farming operations and could impact their conservation practices both short term and long run.”
AFBF tax specialist Pat Wolf says several bills have been introduced in Congress that would block the IRS plan, “The leaders on these bills are hoping to pass them before the end of the year, and any farmer or rancher who’s concerned about this proposed estate tax increase should contact their Senator and Representative and ask them to cosponsor these bills.” Wolff says AFBF supports the legislation seeking to block the IRS proposal, House Bill H.R. 6100 and Senate Bill S.3436.
Indiana Senator Joe Donnelly told HAT that he will work to get this issue dealt with, “We certainly are going to look very, very closely at this. I also serve on the Banking Committee. And it’s so it’s kind of a good nexus to try to work to make sure that our farmers aren’t going be put in a more difficult situation.”
Timing is critical since this is an issue that must be dealt with by the end of the year. “The IRS is proposing to take away an estate planning tool that allows farmers and ranchers to reduce the value of their business assets for estate tax purposes. This means that farmers and ranchers could end up paying more estate taxes when a family member dies,” Said Wolf.