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Tag: Taxes

October 15 Tax Extension Deadline: What Farmers Need to Know

Blue tax forms and a blue book on top in the corner with a percent sign

TL;DR: If you filed for a federal tax extension this spring and still haven’t filed your 2025 return, October 15, 2026 is generally the filing deadline. An extension gave you more time to file, not more time to pay. If your farm books are behind, start getting them updated now so your tax professional has accurate numbers to work with. The October 15 Deadline is About Filing If you requested an extension by the April filing deadline, the IRS generally gives taxpayers until October 15 to file. This is separate from quarterly estimated tax payment deadlines. If your farm is organized as a calendar-year S corporation and you filed an extension, the federal filing deadline is generally September 15. Nonprofit filing deadlines depend on the organization’s tax year, and some extended nonprofit returns are also due September 15, so check the deadline that applies to your organization. An extension gives you more time to file your return, not more time to pay taxes that were due by the original deadline. If you still owe tax from the spring, interest and a failure-to-pay penalty may apply. What Happens If You Miss the Deadline? If you don’t file by the extended deadline, a failure-to-file penalty may apply. The IRS generally charges 5% of unpaid tax for each month or part of a month a return is late, up to 25%. Interest may also continue on unpaid balances. Some taxpayers may qualify for additional time, including certain taxpayers affected by federally declared disasters or serving in qualifying combat zones. Check current IRS guidance if that applies to you.   What Farmers, Ranchers and Agribusinesses Should Pull Together Now If your return isn’t filed yet, start with: Final income and expense totals for the tax year Reconciled bank and credit card statements Records for equipment, vehicles, buildings, and other depreciable farm assets Documentation for farm expenses such as feed, seed, fertilizer, fuel, repairs, and supplies Schedule F details for farmers who report farm income and expenses there Records for sales or purchases of livestock, equipment, land, or other significant assets Anything else your tax professional has requested If your books have gaps, duplicate transactions, uncategorized expenses, or missing reconciliations, it’s important to address those now. Your tax professional needs reliable numbers to prepare an accurate return.   Get Your Books Cleaned Up, Then File We suggest that you clean up your books before filing taxes. Good Agriculture helps farmers keep their books and finances in order throughout the year, with tax filing also available to our bookkeeping farmers.  Whether you’re catching up on transactions or managing multiple enterprises, accounts, loans, and assets, having accurate books gives you the financial information you need to file and make better decisions for your operation. If your books are behind, reach out before the October 15 deadline so there’s time to get your records in order. TLDR means “too long; didn’t read.” It’s a quick summary of the most important information in an article.

Cash vs. Accrual

TL;DR: Most farmers use cash accounting for taxes because it’s simpler, but growing farms often use accrual to track true profitability. Here is how to decide which one makes sense for your farm business.    There are two main ways to track your farm’s income and expenses: Cash or Accrual. The most common method is cash filing, simply recording money as it hits or leaves your bank account. However, some farms choose accrual to see the bigger picture of their financial health.   This IRS breaks down the difference between the two. Here is our version specifically for farmers: What is Cash Filing? The cash method means you count transactions only when money actually changes hands. If you sell and get paid today –> today’s income If you buy seed and pay today  → that’s today’s expense It works just like your bank account: money in, money out. This is why most farmers use it—it is easier to manage and aligns well with the seasonality of farming (e.g., buying fertilizer in December to lower your tax bill for that year). What is Filing Accural? Accrual means you report income when you earn it and expenses when you incur them, regardless of when the cash actually moves. Let’s say you invoice a customer for seedlings but they pay you next month—accrual accounting counts for it today instead of next month.  If you sell a crop today, but get paid next month → accrual counts it today If you grab supplies now but pay later → accrual counts when you get the supplies Why do this? It helps farmers see the true profitability of their operation. For example, if you have a barn full of grain that you haven’t sold yet, cash accounting says you are “broke,” but accrual accounting shows you have valuable inventory assets. How Do I Known What’s Right for Me? Cash filing is default. If your farm is small or simple, cash is the most straightforward bucket. If your farm is growing, has significant inventory, accrual accounting might be necessary. You don’t have to figure this out yourself. We work with farmers to handle their bookkeeping and tax strategy, whether you file on cash or accrual. Learn more about how we help farmers save time and money with our bookkeeping.

Farm Bookkeeping and Tax Tips Webinar Recording

Bookkeeping and taxes are two of the biggest stress points for farmers, especially heading into tax season. In this session, Good Agriculture CEO Alex Edquist explains how to read your financial statements, structure your chart of accounts using Schedule F, track revenue and expenses correctly, and understand depreciation.

Farm Bookkeeping and Tax Tips Webinar Recording

Watch the Advanced Farm Bookkeeping webinar recording to learn practical strategies for improving cash flow, budgeting effectively, and making data-driven financial decisions that strengthen your farm’s long-term profitability.

What is a Schedule F Form?

Tax forms

A clear guide to IRS Schedule F for farmers – what it is, who must file, and how to report farm income and expenses accurately for tax season.

Preparing Your Farm for Taxes Webinar Recording

In this webinar recording, the team focused on helping farmers understand what actually matters when it comes to taxes and how to prepare without scrambling at the last minute. Alex and Euna walked through the basics of farm taxes, including which forms farmers need to file, common deadlines, and how income and expenses flow through a farm business.

September 15th Tax Deadlines Are Coming!

The September 15th tax deadline is approaching. Learn what farmers need to file, how estimated payments work, and what steps you can take now to stay organized and avoid penalties.

Preparing for Tax Season Webinar Recording

Watch our tax season preparation webinar recording designed specifically for farmers. Learn how to organize your financial records, reduce stress at tax time, and make smarter decisions for your farm business.

Prepare for Tax Season with Us and a Tax Professional

Tax forms and preparing for tax season webinar ad with image of tax professional

Tax season doesn’t have to be stressful. Learn how proper farm bookkeeping and working with a qualified tax professional can help you stay organized, reduce surprises, and confidently prepare your farm business for filing season.

Preparing Your Farm for Tax Season

Preparing your farm for tax season starts long before filing day. Learn how organized bookkeeping, accurate expense tracking, and proactive tax planning can help farmers reduce stress, maximize deductions, and stay compliant with agricultural tax requirements.