Farmers to receive FSA annual payment statements
By WILLIAM J. HARMON
Executive Director
Marion County FSA
Producers should soon be receiving in the mail their reports of FSA/CCC payments issued to them during the 2004 calendar year. These reports recorded by individual or entity identification number on form CCC-1099G inform persons who earned federal farm program or Commodity Credit Corp. (CCC) based benefit payments of the specific amounts reportable to the Internal Revenue Service (IRS) as taxable income.
Types of payments that are considered taxable income are annual payments from Direct and Counter-cyclical Program contracts, the Conservation Reserve Program (CRP), the Loan Deficiency Payment (LDP) program, and considered marketing gains from commodity loans.
Producers should attempt to balance amounts listed on the 1099G reports with their own personal accounting records. But, only in cases where significant differences occur, should county FSA offices be contacted to assist producers in reconciling problems. Producers should consult their tax accountant, adviser, or the IRS when they are in need of legal tax advisement or information.
