Everyone loves the color green, especially when it comes to money! If you are participating in any of the Farm Service Agency’s programs and love the green assistance we provide, make sure to complete the following: FSA producers are required to certify compliance with Adjusted Gross Income provisions to participate in our programs.
This year, FSA and the Internal Revenue Service have finalized an electronic data-sharing process to check 2009 and 2010 AGI compliance of program participants. This process requires producers to complete the required consent forms, CCC-927(Individual) and/or CCC-928(Legal Entity), and mail them directly to the IRS by June 15.
FSA county offices will not accept or retain any completed forms. FSA does not see tax return information or any other personally identifiable information at any time during this process, since the forms are directly sent to the IRS from you. IRS will only use this information for the specified purpose of verifying average AGI.
These consent forms authorize Commodity Credit Corporation and FSA to share program participant information with IRS. The average AGI verification process will electronically look at certain tax information filed for the applicable 3-year period and perform a series of calculations to determine Average AGI.
The IRS will then take those averages and compare them to FSA AGI limitations. FSA will receive a summary of the results with indicators of whether the participant appears to exceed FSA AGI limitation amounts.
Confused yet? Here are some of the most commonly asked questions:
Why is it necessary to verify average AGI?
Without an adequate verification process, FSA cannot ensure payments are only being made to eligible producers.
Who is required to file a CCC-927 or CCC-928?
All entities, members of entities, and individuals are required to file with the IRS. Individuals file the CCC-927 form. Legal Entities will file the CCC-928. If you filed the CCC-926 Average Adjusted Gross Income Statement with FSA, you must file the IRS form. Those participating in any FSA or NRCS programs must file!
What will happen if I don’t return it?
Failure to file the consent form will determine the producer noncompliant with AGI limitations for the 2009 and 2010 program years. It may also require the participant to pay back any FSA and NRCS payments from those two years.
Where can I get these forms?
Copies of the CCC-927 and CCC-928 forms are available at your local FSA office or participants can visit their FSA State website and download the forms. There is also an AGI fact sheet available online at: www.fsa.usda.gov/Internet/FSA_File/irsmou10.pdf.
Basically, what needs to be done?
To avoid delays in 2010 payments and the possibility of paying back 2009 payments, program participants need to complete the CCC-927 and/or CCC-928, mail the completed forms directly to IRS at the address specified on the forms by June 15.
Until next week, remember no IRS form equals no payments!
That’s All for Now,