New IRS Rules Let Farmland Sellers Pay the Tax Over Four Years - Clear Start Tax Explains Why Timing the Election Matters More Than the Rate

The relief is claimed on a timely filed return, not after the notices start. For anyone who has already sold land and gone quiet, that sequence is everything.

IRVINE, CA / ACCESS Newswire / October 9, 2026 / Treasury and the IRS have issued proposed regulations, REG-117095-25, under new Code Section 1062 that would let eligible taxpayers who sell or exchange qualified farmland to an individual actively engaged in farming elect to pay the resulting tax in four equal annual installments. Clear Start Tax says the significance for taxpayers is less about the schedule itself and more about when the election has to be made, because a one time land sale is one of the most common ways an individual ends up owing the IRS far more than they hold in cash.

Taxpayers carrying a balance from a property sale or any other one time event can check which resolution options are still open to them.

"A land sale does not feel like a tax problem on the day it closes. It feels like a deposit. The problem shows up the following spring, when the return is prepared and the money has already been spent on debt, equipment or family," said a spokesperson for Clear Start Tax, a national tax relief and resolution firm.

Under the proposed rules, the property being sold or exchanged must qualify, the buyer must be an individual actively engaged in farming, and 25 percent of the tax comes due with each of the four installments. The election is made on a timely filed return.

The proposed regulations are open for public comment, with comments due November 30, 2026.

"This is a statutory payment schedule, not a negotiated installment agreement, and people blur the two constantly. If an installment is missed, the taxpayer is back in the normal collection process, where the tools are notices, liens and levies," the spokesperson said.

To help taxpayers who are facing a large balance from a farmland sale or another one time transaction, Clear Start Tax recommends:

• Model the tax before the sale closes, not after the proceeds have been distributed
• File on time even when the balance cannot be paid in full, since elections and most relief depend on a timely filed return
• Confirm whether prior year returns are outstanding, because unfiled years block most resolution routes
• Treat the first IRS notice as the start of a clock rather than a formality
• Get an accurate transcript review so the balance, penalties and interest are known before choosing an option

By answering a few questions about what is owed and how many years are unfiled, taxpayers can find out whether they qualify for relief under the IRS Fresh Start Program.

"The taxpayers we see in collections rarely made one bad decision. They made a reasonable one at closing, waited to see what the return said, and by then the options that required a timely filed return were gone," the spokesperson added.

About Clear Start Tax

Clear Start Tax is a nationwide tax resolution and relief firm specializing in helping individuals and businesses address IRS and state tax issues. With a team of experienced tax professionals, the company provides tailored strategies for resolving back taxes, negotiating settlements, and achieving long-term compliance.

Need Help With Back Taxes?

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Contact Information

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SOURCE: Clear Start Tax

View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/new-irs-rules-let-farmland-sellers-pay-the-tax-over-four-years-c-1232832