Be on the lookout for IRS compliance form


Hello Again!

Do you know what numismatics is? This is the scientific study of money and its history in varied forms. Barter was considered the first form of money in which an individual would exchange a personal possession for something of value they wanted.

Through the years, money has taken on several different forms. People used shells in China, wampum was used by the North American Indians, silver coins were popular around 500 BC and in 118 BC leather currency was actually used.

No matter what form it takes today, the payments (money) you have received or may receive in the future from the Farm Service Agency won’t escape the eye of the Internal Revenue Service.

Participants in the Farm Service Agency programs and the programs administered by the Natural Resource and Conservation Service must certify their compliance with average Adjusted Gross Income guidelines. This certification is completed yearly when a farmer is applying for program payments.

Both agencies have entered into an agreement with the Internal Revenue Service to check all producers and entities for compliance, and, producers must complete a Consent to Disclosure of Tax Information to apply for program payments.

FSA is now trying to reconcile IRS rejection reports for 2009 and 2010 forms and the list is not very short.

In September, each producer will receive a letter from the Internal Revenue Service informing them that their form was not received. We realize producers mailed the reports — the problem comes in the failure of the IRS to match your form up with a valid IRS record.

Don’t pitch

Please do not throw this letter aside thinking the IRS made a mistake. You have 30 days in which to file your paperwork one more time and hopefully match with a valid IRS record. Failure to do this within 30 days will result in you receiving another letter informing you that you or your entity is found ineligible for program payments for 2009 and/or 2010 and demands a full refund of payments received.

There are some very important steps to take to ensure your Consent to Disclosure of Tax Information is completed correctly.

As this form is pulling from the IRS records, you MUST file in the name as it appears on your 2009 and/or 2010 income tax return. You MUST use the same tax identification number.

The form MUST be signed, and be sure it is the same as you sign your income tax forms.

Mail only ONE form per envelope. If you put more than one in an envelope, IRS does not look at additional papers.

Be sure you fill out ALL OF THE REQUIRED BLOCKS! We will gladly assist you but you must fill out the form yourself. We are not permitted to fill out the form.

The main requirement to remember is the information must match exactly to how you file your income tax forms!

Please keep this article in a safe place so you can review it whenever filling out this paperwork. Your local FSA office will be glad to provide you with additional forms and any assistance you may need.

Another heads up: We just received notification that after March 1, 2013, the Treasury will no longer issue paper checks. Producers who have elected to receive a paper check versus direct deposit will receive a debit card for their program payments.

All producers who still want to hold that check in their hand may want to consider switching over to direct deposit now. There is one good thing for direct deposits — you get your money faster!

That’s all for now,

FSA Andy


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FSA Andy is written by USDA Farm Service Agency county executive directors in northeastern Ohio.



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