IRS seeks comments on proposed farmland tax installment rules
A September 28 Treasury and IRS announcement describes proposed rules for paying tax on qualifying farmland sale gains in four annual installments, with comments due November 30.
What the record says
The proposal addresses elections under Internal Revenue Code Section 1062. Eligibility generally requires U.S. farmland used for farming during substantially all of the preceding ten years, an enforceable farming-use restriction for ten years after sale, and an individual buyer actively engaged in farming. The proposed schedule divides applicable tax into four equal annual payments.
Source details and supporting locations.
Practical next step
Consult the proposed regulations for eligibility and comment-submission instructions before the November 30, 2026 deadline.
Limits and what is not established
These implementation regulations are proposed, not final. The installment option does not erase the tax, and this summary does not determine any seller’s eligibility. The announcement was issued September 28.
Sources checked October 16, 2026. Later notices may change instructions or arrangements.
Original sources
Internal Revenue Service: original information