IRS respite on alternative minimum tax for farmers.

Kiplinger Tax Letter, The, February, 1997

A respite for farmers from IRS and the alternative minimum tax. In '95, IRS ruled that farmers who sold crops on a delayed-payment basis had to report the full payment in the year sold for minimum tax purposes. Ruling raised a firestorm of protests. And Congress vowed to reverse IRS.

The Service won't apply its adverse ruling to '96 tax returns. Allows Congress time to revise tax law so minimum tax won't apply for '97.

But not all farmers benefit...does not apply to farmers audited before Jan. 28 or already fighting IRS in court on this (Notice 97-13).