IRS Gives Relief to Farmland Sellers in New GOP Law Guidance

The IRS in new guidance released Monday gave some relief to farmland owners who are selling land to farmers.

The GOP’s 2025 tax-and-spending law allows owners who sell land to farmers to elect to pay tax from the gain of the sale in four equal annual installments, instead of all in the year of sale.

Notice 2026-3 said the IRS will waive a “portion of the addition to tax under sections 6654 and 6655 attributable to a qualified sale or exchange for which an election under section 1062(a) (section 1062 election) is properly made.”