The American Institute of CPAs (AICPA) has urged the Internal Revenue Service (IRS) and the US Treasury to waive underpayment penalties for qualified farmers who may have missed a filing deadline because of late changes to Form 8995.
In a recent letter to the IRS, the AICPA said changes to the Qualified Business Income Deduction Simplified Computation form have effectively shortened the time available for many farmers to complete their 2025 tax returns.
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On 27 January 2026, the IRS revised the instructions for Form 8995.
The update requires taxpayers to adjust the amount reported on line 11 to reflect new deductions appearing on Form 1040, line 13b, created by the One Big Beautiful Bill Act (H.R. 1).
This revision meant Form 8995 itself had to be updated and reissued.
According to the AICPA, in some cases the updated version of Form 8995 was not accessible until 23 February.
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By GlobalDataThe institute said this late release caused particular problems for farmers and fishers.
Under existing rules, these taxpayers may skip the 15 January estimated tax instalment if they file their federal return by 1 March (2 March in 2026) and pay the full tax due with that filing.
Meeting that date allows them to avoid both the January payment and related underpayment penalties.
The AICPA noted that the delayed form availability made it difficult for affected taxpayers to meet the 2 March deadline, leaving only about a week to complete and file accurate returns using the revised Form 8995.
AICPA Tax Policy & Advocacy senior manager Scott Klein said: “This disruption has imposed added hardship on qualified farmers, a group that broadly relies on the Qualified Business Income deduction, and their preparers, making it difficult to complete and file accurate returns by Monday’s deadline.”
In its submission, the institute asked the IRS and Treasury to use their authority under section 6654(e)(3)(A) to grant penalty relief.
It recommended protection from underpayment penalties for qualified farmers who file their 2025 federal income tax returns, including Form 8995, and pay their outstanding tax by 15 April 2026.
