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USDA-NRCS Offers Major Correction About Reissuing 1099 Tax Forms

Only 284 producers, not all producers in the U.S., were sent incorrect 1099 tax forms for 2012

Published on: Feb 14, 2013

CORRECTION: USDA's Natural Resources Conservation Service on February 14, 2013 issued an update and a correction to the information the agency released February 12 regarding 1009 tax forms it sent to farmers for 2012 tax year.

Originally, NRCS said all producers in the U.S. who participated in NRCS conservation cost-share programs in 2012 were sent the wrong 1099s in January due to a computer glitch. Now, NRCS says apparently only 284 producers received the incorrect 1099s.

Jody Holzworth, acting director of the public affairs division of NRCS in Washington D.C., says these 284 producers will each receive a personal telephone call within the next couple of days.

Only 284 producers, not all producers in the U.S., were sent incorrect 1099 tax forms for 2012
Only 284 producers, not all producers in the U.S., were sent incorrect 1099 tax forms for 2012

The original news item, based on information released by USDA, appeared Feb. 12 under the title "USDA-NRCS To Reissue 2012 1099 Forms." Full text of the original item is below:

The 2012 IRS 1099 forms issued to farmers who received  financial assistance from USDA's Natural Resources Conservation Service are incorrect and are scheduled to be reissued by USDA's Office of the Chief Financial Officer in March. USDA made that announcement today and it pertains to all farmers in the U.S. who received the IRS 1099s from USDA/NRCS in January.

The IRS forms issued in January may either be in the wrong amount or no 1099 was issued when one should have been, according to Larry Beeler, NRCS assistant state conservationist for programs in Iowa.

What caused this snafu? Important data used to produce the correct 1099 information was left out when a system change took place May 1, 2012. NRCS financial experts are working with the USDA's Controller Operations Division to help get the thousands of 1099s to the appropriate people as quickly as possible.

At this time there is no guaranteed date by which the 1099s will be delivered, although they are expected to be released March 8. USDA is working to ensure a quick turnaround so that the 1099 mailing is expedited, say NRCS officials. The Chief Financial Officer will keep NRCS officials informed as this issue is resolved.