Wednesday, June 05, 2019

More on the Disaster Aid Bill and Payment Limitation

From the text of the bill:

"Sec. 103. (a) (1) Except as provided in paragraph (2), a person or legal entity is not eligible to receive a payment under the Market Facilitation Program established pursuant to the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.) if the average adjusted gross income of such person or legal entity is greater than $900,000.
(2) Paragraph (1) shall not apply to a person or legal entity if at least 75 percent of the adjusted gross income of such person or legal entity is derived from farming, ranching, or forestry related activities.

(b) In this section, the term “average adjusted gross income” has the meaning given the term defined in section 760.1502 of title 7 Code of Federal Regulations (as in effect July 18, 2018)."
So someone whose gross income combines farm and nonfarm sources has an additional hoop to jump through.  My impression is that FSA enforces the basic AGI limit by passing the appropriate ID to IRS and gets back data (likely just a flag) on whether the $900,000 limit is exceeded or not.  Now they'll have another determination to make, after that.  I'm sure FSA welcomes the additional work (NOT).

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