This week, Sen. Chuck Grassley of Iowa urged the IRS to provide penalty relief to farmers who are ordinarily required to file and pay all taxes due by March 1.   Due to late action by the President and Congress on end of the year tax matters, the tax season has been delayed, and many forms necessary for farmers to complete their returns have yet to be finalized.   Today, the IRS announced it will provide penalty relief to farmers who request a waiver and complete their tax returns by April 15, 2013.  Grassley made the following comment on the announcement.

"This is good news.  Farmers shouldn't face a penalty for tax season delays that have nothing to do with them.  The IRS is right to provide relief from penalties.  I look forward to the guidance the IRS announced it will issue in the near future to help farmers file their taxes without penalty."

More information on Grassley's request to the IRS is available here.

The text of the IRS news release follows.

IRS Provides Penalty Relief to Farmers and Fishermen

IR-2013-7, Jan. 18, 2013

WASHINGTON – The Internal Revenue Service announced today that it will issue guidance in the near future to provide relief from the estimated tax penalty for farmers and fishermen unable to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns.

The delay stems from this month's enactment of the American Taxpayer Relief Act (ATRA). The ATRA affected several tax forms that are often filed by farmers and fishermen, including the Form 4562, Depreciation and Amortization (Including Information on Listed Property).  These forms will require extensive programming and testing of IRS systems, which will delay the IRS's ability to accept and process these forms.  The IRS is providing this relief because delays in the agency's ability to accept and process these forms may affect the ability of many farmers and fishermen to file and pay their taxes by the March 1 deadline. The relief applies to all farmers and fishermen, not only those who must file late released forms.

Normally, farmers and fishermen who choose not to make quarterly estimated tax payments are not subject to a penalty if they file their returns and pay the full amount of tax due by March 1. Under the guidance to be issued, farmers or fishermen who miss the March 1 deadline will not be subject to the penalty if they file and pay by April 15, 2013. A taxpayer qualifies as a farmer or fisherman for tax-year 2012 if at least two-thirds of the taxpayer's total gross income was from farming or fishing in either 2011 or 2012.

Farmers and fishermen requesting this penalty waiver must attach Form 2210-F to their tax return. The form can be submitted electronically or on paper. The taxpayer's name and identifying number should be entered at the top of the form, the waiver box (Part I, Box A) should be checked, and the rest of the form should be left blank. Forms, instructions, and other tax assistance are available on IRS.gov.

Washington - A bipartisan group of U.S. senators representing states along the Missouri and Mississippi rivers is elevating a request for the Army Corps of Engineers to manage water levels on the Missouri River to avoid a catastrophic economic problem on the Mississippi River.

"Drought conditions mean very low water levels on both rivers, and there needs to be a coordinated effort to make sure navigation isn't brought to a halt all together on the Mississippi River," Grassley said.  "Such a major interruption in commercial activity would ultimately impact jobs in Iowa and throughout the region, and steps can be taken and need to be taken to prevent it."

To avoid a potentially months-long loss of navigation on the Mississippi, senators today urged President Barack Obama to issue an emergency directive to permit additional water flows from Missouri River reservoirs to maintain navigation on the Mississippi.  They also asked for Federal Acquisition Rules to be waived to allow the Corps to expedite blasting of the rock pinnacles near Grant Tower and Thebes, Illinois.

In a letter to the President, the senators said, "Absent emergency action to ensure that water levels do not fall below the level needed to support the navigation channel, commercial navigation on the middle Mississippi River between St. Louis, MO, and Cairo, IL, will be severely impaired as early as mid-December."

Today's request for presidential action follows a request made by senators earlier this month of the Corps.  Senators also have asked the Corps to provide information to justify its resistance to taking action.  Governors from impacted states, representatives of industry and other stakeholders have sought action from the Corps, as well.

Senator Chuck Grassley (R-Iowa) signed the letter to the President along with Senators Tom Harkin (D-Iowa), Roy Blunt (R-MO), Mark Pryor (D-Ark.), Lamar Alexander (R-TN), Al Franken (D-MN), Mark Kirk (R-IL), Mary Landrieu (D-LA), David Vitter (R-LA), Claire McCaskill (D-MO), Thad Cochran (R-MS), Amy Klobuchar (D-MN), John Boozman (R-Ark.), Joe Manchin (D-WV), Roger Wicker (R-MS), and Sherrod Brown (D-OH).

Here is the text of the letter.

November 28, 2012

President Barack Obama

The White House

1600 Pennsylvania Avenue NW

Washington, DC 20500

Dear President Obama:

We understand that the governors of impacted states, representatives of industry, and others have written seeking action by the U.S. Army Corps of Engineers to prevent an economic calamity in the center of our nation.  We write in strong support of their request.  Absent emergency action to ensure that water levels do not fall below the level needed to support the navigation channel, commercial navigation on the middle Mississippi River between St. Louis, MO, and Cairo, IL, will be severely impaired as early as mid-December.  Substantial curtailment of navigation will effectively sever the country's inland waterway superhighway, imperil the shipment of critical cargo for domestic consumption and for export, threaten manufacturing industries and power generation, and risk thousands of related jobs in the Midwest.

Given the magnitude of the economic impact that would result from a potentially months-long loss of navigation on the Mississippi, we support an emergency directive to permit additional water flows from Missouri River reservoirs to maintain navigation on the Mississippi, and to waive Federal Acquisition Rules (FAR) to allow the Corps of Engineers to expedite blasting of the rock pinnacles near Grand Tower and Thebes, Illinois.  These pinnacles pose a hazard to barge navigation during periods of low water levels and their removal will allow commercial navigation on the Mississippi to continue.  Once the rocks are removed, additional water flows from the Missouri River would be unnecessary or significantly reduced.  Waiving FAR guidelines could allow the Corps to sole source for the work, eliminating the 30-day requirement for bids and allowing the work to proceed in an expedited manner.

The Mississippi River is an artery of commerce critical to the movement of hundreds of millions of tons of essential goods and commodities such as corn, grain, coal, petroleum, chemicals, and many other products important to the national economy.  All told, cargo valued at over $7 billion, including 300 million bushels of agricultural products and 3.8 million tons of coal, could experience shipping delays that cause ripple effects and damage local economies up and down the Mississippi and Ohio Rivers.  In addition, if shipping on the river is impeded, about five million barrels of domestically produced crude oil will not be shipped and purchases of imported crude oil will increase by about $550 million as a result.

Given the potentially large negative impact of this looming disaster, we hope that you will give due consideration to our request.

Sincerely,

WASHINGTON -- Senator Chuck Grassley today joined Senator Mark Udall of Colorado , Rep. Steve King of Iowa, Rep. Jerry McNerney of California, and 40 veterans - many of whom have found post-military careers in the wind-energy industry - for a news conference to urge that an extension of the production tax credit for wind energy be included in year-end legislation to continue as many as 60 expiring tax provisions.

Shannon Lehmkuhl of Estherville and Troy Ellis of Newton were among the veterans at the event on Capitol Hill.  They were participating in an Operation Free two-day fly-in to meet with members of Congress.

Click here for video of the news conference. Click here for photos of the news conference.

"The production tax credit for wind is working and should be part of the effort in Washington to help get more Americans - and more veterans - working," Grassley said. "Certainty about tax policy and affordable energy are factors for economic growth, and as much energy as possible - both traditional and renewable - should be produced at home to create jobs and strengthen economic and national security.  There's no reason to exacerbate the unemployment problem by letting this successful incentive lapse."

In August, the Senate Finance Committee, with a bipartisan vote, passed an amendment authored by Grassley to extend the wind energy production tax credit.  Legislation in the House of Representatives to extend the production tax credit for wind has 118 cosponsors, both Democrats and Republicans.

Grassley authored the production tax credit for wind when it was first passed in 1992.  He has worked since then to extend the successful policy.  Udall has been a vocal proponent for the wind production tax credit, speaking nearly every day the Senate has been in session to urge his colleagues to extend the production tax credit and secure made-in-America energy and the jobs it creates.

Grassley said the production tax credit for wind is available only when wind energy is produced.  There's no benefit for simply placing the turbine in the ground.  "It's tax relief that rewards results," Grassley said.  "That's much different than failed taxpayer-funded grants and loans made since 2009."  The senator said wind energy detractors have blurred the distinction in efforts to undercut wind as a source of clean electricity.

The wind energy production tax credit was created to try to level the playing field with coal-fired and nuclear electricity generation.  If the wind incentive is allowed to lapse on December 31, wind energy would be the only form of energy generation without any federal incentive.

Nationwide, wind-energy production supports 75,000 jobs.  In Iowa, the wind energy industry employs nearly 5,000 full-time workers, with a number of major wind manufacturing facilities.  Iowa generates 20 percent of its electricity needs from wind, and wind energy powers the equivalent of a million homes.  Almost 3,000 utility-scale turbines in Iowa generate lease payments to landowners worth $12.5 million every year.

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Grassley attends Oval Office ceremony to witness signing of the legislation

WASHINGTON - Senator Chuck Grassley today made a special trip to the White House to witness the signing of the Whistleblower Protection Enhancement Act which strengthens existing law to better protect whistleblowers.

Grassley was a co-author of the legislation being signed into law today, and the original 1989 Whistleblower Protection Act it updates.  The legislation was necessary because whistleblowers are being denied the protections they should have under the law because of decisions of the Merit Systems Protection Board, the Federal Circuit Court of Appeals, and a general anti-whistleblower sentiment found in executive branch agencies.

"As one of the authors of the original Whistleblower Protection Act, and a long-time advocate for whistleblowers, it's wonderful to see this legislation signed into law.  Whistleblowers strengthen our system of checks and balances, and that strengthens our system of representative government.  It's a constant battle to make sure that these patriotic citizens who shed light on overspending, mismanagement and layers of ineffective leadership within the federal government are protected," Grassley said after the signing in the Oval Office.  "Now, more work needs to be done to ensure that FBI whistleblower protections are updated and that intelligence community whistleblowers are covered under the law and given the protections they deserve."

A long-time advocate for whistleblowers, Grassley has stood up against the heavy hand of the bureaucracy - regardless of whether Republicans or Democrats were in charge -- for individual whistleblowers from the Pentagon, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS, the Interior Department, the Department of Health and Human Services, the Food and Drug Administration, and the Securities and Exchange Commission.

In addition to co-authoring the 1989 whistleblower law, Grassley also authored the 1986 update of the False Claims Act to include qui tam provisions that empower private citizens, who had information about fraudulent activity by government contractors, to bring wrongdoing forward and sue in the name of the government.  To date, these whistleblower provisions have recovered more than $30 billion for taxpayers that otherwise would be lost to fraud.

In 2009, Grassley and Senator Patrick Leahy won passage of the Fraud Enforcement and Recovery Act which made the most significant improvements to the False Claims Act since 1986.  The law restores the scope and applicability of the False Claims Act where it had been limited by court decisions.  This effort also revised criminal laws to help prosecute mortgage fraud, securities fraud, and complex financial crimes that led to the 2008 financial crisis.

In addition, Grassley authored the 2006 overhaul of the IRS whistleblower program to fight major tax fraud.  The IRS recently paid out its largest award ever, but has acknowledged, after scrutiny from Grassley, that the agency must be more timely and responsive in processing whistleblower claims.

The Whistleblower Protection Enhancement Act of 2012 will:

·         clarify that any disclosure of gross waste or mismanagement, fraud, abuse, or illegal activity may be protected, but not disagreements over legitimate policy decisions;

·         suspend the sole jurisdiction of the Federal Circuit Court of Appeals over federal employee whistleblower cases for two years;

·         extend Whistleblower Protection Act coverage and other non-discrimination and anti-retaliatory laws to all employees of the Transportation Security Administration;

·         clarify that whistleblowers may disclose evidence of censorship of scientific or technical information under the same standards that apply to disclosures of other kinds of waste, fraud, and abuse;

·         codify portions of the anti-gag provision, which Grassley originally got passed, that has been part of every Transportation-Treasury Appropriations bill since 1988;

·         establish Whistleblower Protection Ombudsmen to educate agency personnel about whistleblower rights; and

·         provide the Office of Special Counsel with the independent right to file "friend of the court" briefs, or amicus briefs, with federal courts.

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