Notice 2026-3: Estimated tax penalty relief for elections under section 1062 to defer gain from sale of qualified farmland property

Relief dependent on taxpayer making valid election under section 1062(a)

The IRS today released Notice 2026-3 providing relief from the additions to tax under sections 6654 and 6655 for underpayment of estimated income tax by a taxpayer that makes a valid election under section 1062(a) to defer gain from a sale of qualified farmland property.

The notice states that the instructions to forms relevant to estimated income tax requirements will be modified, as necessary, to reflect the relief granted by the notice.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.

Relevant Results

Notice 2026-3: Estimated tax penalty relief for elections under section 1062 to defer gain from sale of qualified farmland property

Contact KPMG

Headline