Regulations Issued on Farm Income Averaging

For tax years beginning after 2003, the American Jobs Creation Act of 2004 extended the option of income averaging to individuals engaged in the trade or business of fishing. Previously, the option only applied to farmers. The IRS has just issued TD 9417 containing temporary, final, and proposed regulations under Sec. 1301 reflecting changes for fishing businesses. Taxpayers may apply these regulations in tax years beginning after 2003 and before publication in the Federal Register, but only if all provisions are applied consistently in each tax year.