IRS Extends Drought Relief for Farmers and Ranchers

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IRS In Audio

Internal Revenue Service

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3 days ago

Stay informed about the latest IRS news and updates in audio—without the hassle of digging through the website. IRS in Audio transforms official IRS announcements, policy changes, and tax-related guidance into easy-to-digest audio segments. Each episode provides accurate, timely audio information directly from the IRS, helping you stay compliant, save time, and avoid costly mistakes.

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IRS Extends Drought Relief for Farmers and Ranchers

IRS In Audio

1 minute 43 seconds

1 month ago

IRS Extends Drought Relief for Farmers and Ranchers

IRS Extends Drought Relief for Farmers and Ranchers

What Happened:

IRS issued Notice 2025-52, extending tax relief for farmers and ranchers who sold livestock due to drought.
Relief applies across 49 states, D.C., and other regions with drought (Sept. 2024 – Aug. 2025).

Who Qualifies:

Eligible: Sales/exchanges of livestock held for draft, dairy, or breeding purposes.
Not eligible: Livestock raised for slaughter, for sporting purposes, or poultry.

Relief Provided:

Normally, replacement of drought-sold livestock must occur within 2 years.
Extended to 4 years due to drought conditions.
If drought persists, IRS can extend further.
New rule: Farmers get until the end of the first tax year after the first drought-free year following the 4-year period.
Example: If the deadline was end of 2025, now extended to the next tax year.

How Eligibility is Determined:

Based on National Drought Mitigation Center designations of exceptional, extreme, or severe drought.

Further Resources:

Notice 2006-82: Provides detailed examples of how the rule works.
Publication 225 (Farmer’s Tax Guide): Guidance for reporting drought sales and other farm tax issues.

Big Picture:
This extension gives affected farmers and ranchers more time & flexibility to restore herds without immediate tax burden, easing recovery from widespread drought impacts.