 into the revenue service IRS tax news IRS continues relief to drought stricken farmers and ranchers in 44 states other regions i'll tell you what i need relief for my gout stricken big toe i know phil drought and gout aren't even remotely the same thing but drought sounds like gout and it reminded me of my throbbing big toe okay phil or whatever phil i'm not always just thinking about only myself i i think about other people too i know the drought will negatively impact farmers and that's horrible now i hate to think about what the impact will be on my already skyrocketing grocery bill i mean on everybody's grocery bill especially the grocery bill of like poor starving children the president spending habits are way out of control oh i can't afford that yes somebody needs to tell him to hold his horse i tell you i'm a financial genius i buy an eight dollar lobster fatten it to an 80 dollar lobster and eat the profit why because the horse really needs a hug now you hold your horse feathers little seed hold your horse for crying out loud hey hold your horses i'm sorry is that offensive horses have feelings too not only do they not hold their horse they work the poor horse to death but boston's 300 miles away and ben kicked our horse to death we'll never get there and and then once dead they continue to beat the dead horse like being a dead horse out there by the way the administration is looking to hire a new chief economic spokesman to really drive their distorted message forward with a lot of horsepower a horse on horse of course cool but nobody wants the job no thanks because they know they will end up alone eventually dead with their dead horse corpse continually beaten i'll give you anything if you would only stop hitting me please stop pulling my nose it is not fake i think i am dying please take me to the hospital ir 2022-166 september 28 2022 washington the internal revenue service is reminding farmers and ranchers in applicable regions forced to sell livestock because of drought conditions that they may have more time to replace their livestock and defer tax on any gains from the forced sale today the irs posted notice 2022-43 there's a link to that here listing the applicable regions a county or other jurisdiction designated as eligible for federal assistance on irs.gov this includes 44 states two u.s territories and two independent nations in a compact a free association with the united states the relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft dairy or breeding purposes sales of other livestock such as those raised for slaughter or held for sporting purposes or poultry are not eligible the sale must be solely due to drought causing an area to be designated as eligible for federal assistance livestock generally must be replaced within a four-year period instead of the usual two-year period the irs is authorized to further extents this replacement period if the drought continues the one-year extension announced in the notice gives eligible farmers and ranchers until the end of their first tax year after the first drought free year to replace the sold livestock details including an example of how this provision works can be found in notice 2006-80 through 82 there's a link to that here the irs provides this extension to eligible farmers and ranchers that qualified for the four-year replacement period if the applicable region is listed as suffering exceptional extreme or severe drought conditions during any week between September 1st 2021 and August 31st 2022 this determination is made by the national drought mitigation center there's a link to that here as a result eligible farmers and ranchers whose drought sale replacement period was scheduled to expire on December 31st 2022 and most cases now have until the end of their next tax year to replace the sold livestock because the normal drought settled replacement period is four years this extension impacts drought sales that occurred during 2018 the replacement periods for some drought sales before 2018 are also affected due to previous drought related extensions affecting some of these localities more information on reporting drought sales and other farm related tax issues can be found in publication 225 farmers tax guide available on irs.gov there's a link to that here as well as a link to some of these other items here there'll be a link to this in the description